Israel's Ministry of Defense, under Defense Minister Israel Katz, has ordered the seizure of 187 cryptocurrency wallets believed to be linked to Iran's Islamic Revolutionary Guard Corps (IRGC), a group designated as a terrorist organization by the U.S., EU, Israel, and others. The administrative seizure order, issued under the 2016 Anti-Terrorism Law, claims these wallets once processed approximately $1.5 billion in funds, primarily in Tether (USDT), but now hold only about $1.5 million.
Blockchain analytics firm Elliptic integrated the addresses into its monitoring systems, enabling exchanges to screen related transactions. Elliptic noted that while the wallets received significant funds, not all may be directly controlled by the IRGC, with some potentially belonging to cryptocurrency services facilitating transactions for multiple customers. Prior to the seizure, Tether blacklisted 39 of these wallets on September 13, 2025, blocking further transactions—a move reflecting its ongoing cooperation with global law enforcement.
This action is part of a broader international crackdown on the IRGC's use of cryptocurrency to evade sanctions. Recent related events include the U.S. Justice Department seizing $584,741 in USDT from Iranian national Mohammad Abedini, tied to the IRGC's drone program, and the U.S. Treasury sanctioning addresses linked to Sa’id Ahmad Muhammad al-Jamal, which funneled $332 million in USDT to Yemen's Houthi movement with IRGC assistance. In June 2025, pro-Israel hackers drained over $90 million from Iranian exchange Nobitex, alleging IRGC ties.