Israel Seizes $1.5B in Crypto Wallets Linked to IRGC

Israel’s Ministry of Defense has ordered the seizure of 187 cryptocurrency wallets allegedly tied to Iran’s Islamic Revolutionary Guard Corps (IRGC). Authorities claim the wallets, once holding over $1.5 billion in Tether (USDT), are either owned by the IRGC or used in financing terrorism. Currently, they contain about $1.5 million.

The action, announced by Defense Minister Israel Katz under the Anti-Terrorism Law of 2016, comes just days after the U.S. Justice Department seized $584,741 in USDT from an Iranian national linked to the IRGC’s drone program. The IRGC is designated as a terrorist group by Israel, the U.S., EU, Canada, and the U.K.

Blockchain analytics firm Elliptic confirmed the wallets’ activity and added them to its monitoring system to help exchanges block illicit transactions. However, the firm noted that not all addresses may be directly controlled by the IRGC, as some could belong to crypto service providers.

Tether, issuer of the $110 billion stablecoin, has already blacklisted 39 of the wallets, preventing further transactions. The company frequently cooperates with law enforcement to freeze funds tied to illicit finance, highlighting the centralized control of USDT.

This move follows a broader international crackdown on the IRGC’s crypto operations. In June, pro-Israel hackers drained $90 million from Iranian exchange Nobitex, accusing it of IRGC ties. In December 2024, the U.S. Treasury sanctioned wallets linked to Sa’id Ahmad Muhammad al-Jamal, who funneled $332 million in USDT to Yemen’s Houthis with IRGC support.

Experts warn that despite blockchain’s transparency, crypto remains a tool for sanctioned states to bypass restrictions. “Rumors of IRGC using cryptocurrency to circumvent sanctions have persisted for years,” said Amir Rashidi of the Miaan Group.