Israel has seized $1.5 million in cryptocurrency linked to Iranian proxy groups, including the Islamic Revolutionary Guard Corps (IRGC) and Hezbollah, in a significant operation aimed at disrupting terror financing through digital assets. The Israeli Defense Ministry announced on Monday that it had ordered the seizure of 187 crypto wallets allegedly used by the IRGC, which is designated a terrorist organization by Israel, the United States, and the European Union[2][4].
The cryptocurrency involved primarily consisted of Tether’s...
The cryptocurrency involved primarily consisted of Tether’s stablecoin USDT, with the seized wallets having historically received up to $1.5 billion in transactions, though the current holdings at the time of confiscation were around $1.5 million[2]. The operation marked Israel’s first targeting of these Iranian-backed groups via cryptocurrency and was described as “extensive,” involving multiple agencies such as Mossad, military intelligence, and the Israeli police[1][4].
Israeli Defense Minister Yoav Gallant personally issued the...
Israeli Defense Minister Yoav Gallant personally issued the order to confiscate the digital funds and transfer them to the Israeli government. He emphasized that this move effectively cuts off a flow of terror financing that had been increasingly exploiting the relative anonymity and complexity of cryptocurrency transactions to evade conventional financial system controls[1][4].
While blockchain monitoring firm Elliptic tracked the transa...
While blockchain monitoring firm Elliptic tracked the transactions and wallets involved, they noted some uncertainty regarding direct ownership of the wallets by the IRGC, as some addresses could be part of wider cryptocurrency service infrastructure used by multiple customers[2]. Nevertheless, Israel’s National Bureau for Counter Terror Financing expressed strong confidence that the seized wallets were instrumental in supporting severe terror activities attributed to the IRGC and Hezbollah[2].
This seizure follows a broader context of cyber and financia...
This seizure follows a broader context of cyber and financial confrontations between Israel and Iran, including previous cyberattacks and espionage cases involving cryptocurrency payments to Iranian operatives within Israel[3]. The operation highlights Israel’s growing focus on digital currency as a battleground in its efforts to counter Iran’s regional proxy networks and their funding mechanisms.