Israel’s Ministry of Defense announced on Monday that it had ordered the seizure of 187 cryptocurrency wallets allegedly tied to Iran’s Islamic Revolutionary Guard Corps (IRGC), a move aimed at disrupting the group’s alleged use of digital assets to fund terrorism. The announcement comes amid heightened tensions between Israel and Iran and reflects the growing role of cryptocurrencies in national security and counterterrorism efforts.
In a formal document outlining the seizure, the ministry’s National Bureau for Counter Terror Financing (NBCTF) stated that it is “convinced that the cryptocurrency wallets” listed in the order belong to the IRGC and are “used for the perpetration of a severe terror crime.” The IRGC is designated as a terrorist organization by the United States, the European Union, and Israel, among other countries.
Blockchain monitoring firm Elliptic reported that the wallets in question have historically received roughly $1.5 billion in Tether’s stablecoin, USDT. However, Elliptic co-founder and chief scientist Tom Robinson cautioned that the firm cannot independently confirm ownership by the IRGC. He also noted that the wallets currently contain only $1.5 million — a small fraction of the total funds that have flowed through them over time.
Israel’s Ministry of Defense declined to provide further details to TechCrunch regarding how it determined the wallets’ alleged links to the IRGC. In a blog post, Elliptic noted that “some of the addresses may be controlled by cryptocurrency services and could be part of wallet infrastructure used to facilitate transactions for many customers,” suggesting that tracing ownership in digital finance can be complex.
Experts believe Israel may have obtained information about these wallets through cyber operations targeting Iranian infrastructure. Amir Rashidi, director of digital rights and security at the Iran-focused nonprofit Miaan Group, said, “There were always rumors that the IRGC was using cryptocurrency to circumvent sanctions. Many of these cases might involve exchanges or institutions not directly part of the IRGC but connected to it, similar to banks, financial institutions, or even private companies.”
This action is not the first time Israel, or entities linked to its government, have targeted Iran’s cryptocurrency holdings. During the Twelve-Day War between Israel and Iran on June 18, a hacking group believed to have Israeli ties, Predatory Sparrow, infiltrated Iran’s largest crypto exchange, Nobitex. The group reportedly stole approximately $90 worth of cryptocurrency before “burning” it by sending it to inaccessible wallets, effectively destroying the digital assets.
Crypto intelligence firms, including Elliptic and TRM Labs, have previously linked Nobitex to the IRGC, underscoring the military’s interest in monitoring and disrupting digital funding channels used by sanctioned organizations. Analysts note that as cryptocurrencies continue to grow in adoption worldwide, governments are increasingly focused on the regulatory and security challenges associated with digital assets, particularly in the context of national security and international sanctions.
Israel’s latest move highlights how cryptocurrencies, while decentralized and borderless, are increasingly being integrated into global security strategies. As digital assets become more intertwined with geopolitical and financial conflicts, monitoring, tracing, and, where possible, seizing illicit crypto holdings may become a standard part of counterterrorism operations.
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