On July 1, 2026, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) updated its Specially Designated Nationals list, adding 134 cryptocurrency wallet addresses tied to ISIS-Khorasan (ISIS-K), the Islamic State’s Afghan and Pakistani affiliate. The sanctioned addresses include 131 wallets on the TRON blockchain and three on Monero, which collectively received over $1.4 million since 2023 and sent more than $880,000.
Stablecoin issuer Tether responded immediately, freezing all USDT balances in the 131 TRON-based wallets. The move underscores Tether’s zero-tolerance policy toward illicit finance and follows a pattern of increased regulatory scrutiny on crypto transactions linked to terrorism.
Chainalysis and other compliance firms reported that the TRON addresses had exposure to mainstream services and sent funds to Syria-based crypto exchangers. ISIS-K has historically used crypto donation campaigns through its media arm, al-Azaim Media Foundation, accepting TRON, Monero, and Bitcoin.
In a separate same-day action, OFAC sanctioned two Brazilian nationals and four companies associated with Primeiro Comando da Capital (PCC), a Latin American criminal group that laundered over $30 million in drug proceeds using cryptocurrency to move money from the U.S. to Brazil.
The combined value of transfers across all newly designated addresses exceeds $2 million, according to TRM Labs. Crypto compliance platforms have already flagged the addresses, requiring financial institutions to update sanctions screening systems. The actions signal a hardening regulatory stance that could reshape how privacy coins and networks like TRON are perceived by exchanges and institutional participants.
