Israel’s Ministry of Defense ordered the seizing of 187 cryptocurrency wallets, claiming it was used by Iran’s Islamic Revolutionary Guard (IRGC).
The move highlights an increase in cryptocurrency use in licensed states. It comes days after the US Department of Justice seized $584,741 in USDT from Iranian citizens linked to the IRGC drone program.
$1.5 billion in Israel’s crypto wallet seized
Israel’s counterterrofinance agency (NBCTF) and Israel Katz announced Monday a seizure order against 187 wallets, citing its authority under the 2016 anti-terrorism law. Officials said the wallets processed $1.5 billion for $1.5 billion, but now holds about $1.5 million.
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In an administrative seizure order, Katz wrote that the funds are either IRGC’s property or “will be used for crimes of severe terrorism.” The IRGC remains designated as a terrorist organization by Israel, the United States, the European Union, Canada and the UK.
Blockchain analytics company Elliptic Elliptic has integrated seized addresses into its monitoring system. This allows exchanges and institutions to screen trades. Elliptic confirmed that the wallet received the funds, but noted that not everything is directly controlled by the IRGC.
“Some addresses may be controlled by cryptocurrency services and may be part of the wallet infrastructure used to drive transactions for many customers,” Elliptic said.
Tether, the publisher of Stablecoin with a market capitalization of over $110 billion, blacklisted 39 wallets on September 13, blocking further transactions. The company has a history of working with law enforcement by freezing funds related to illegal finance, a practice enabled by the centralized management structure of USDT.
IRGC’s broader crackdown on cryptographic use
The Israeli movement is the latest in a series of international actions targeting the IRGC’s cryptographic network. The IRGC is facing repeated allegations of using cryptocurrencies to skirt sanctions. In June, Pro Israeli hacking group Gonjeshke Darande ran out $90 million from Iranian exchange Nobitex, denounced the IRGC link.
In December 2024, the US Treasury approved a speech in relation to Sa’id Ahmad Muhammad al-Jamal. He had leaked $332 million in USDT to the Hooty movement in Yemen with IRGC support.
Last week, the U.S. Lawyer’s Office in Massachusetts filed civil forfeiture against Mohammad Abedini. They seized $584,741 in USDT connected to the IRGC drone program.
Analysts warn that the latest seizures highlight how transparent, traceable cryptocurrencies can help states that have been approved for liquidity.
“Rumours of IRGC using cryptocurrency to avoid sanctions have been going on for years,” said Amir Rashidi, director of Iran-centric nonprofit MIAAN Group. “Some cases may include exchanges that are connected through complex financial networks rather than directly part of the IRGC.”
