Israel Seizes $1.5 Million from Crypto Wallets Linked to Iran’s IRGC
On Monday, Israel’s Ministry of Defense announced the seizure of 187 cryptocurrency wallets allegedly tied to Iran’s Islamic Revolutionary Guard Corps (IRGC). The move was ordered by the ministry’s National Bureau for Counter Terror Financing (NBCTF), which stated it was convinced the wallets are IRGC property and used in severe terror-related activities.
The IRGC is designated as a terrorist organization by Israel, the United States, the European Union, and other nations. According to blockchain analytics firm Elliptic, these wallets have cumulatively received approximately $1.5 billion in Tether’s stablecoin USDT over time. However, Elliptic’s co-founder and chief scientist Tom Robinson clarified that the company cannot independently confirm the wallets’ ownership by the IRGC. Furthermore, the wallets currently hold only about $1.5 million, a small fraction of the total funds previously transacted.
Israel’s Ministry of Defense has not provided details on how it established the connection between the wallets and the IRGC, declining to comment on inquiries from TechCrunch. Elliptic noted in a blog post that some wallet addresses might belong to cryptocurrency service providers, potentially serving as infrastructure facilitating transactions for multiple clients rather than direct IRGC holdings.
Experts speculate on the origins of the intelligence used in this operation. Amir Rashidi, director of digital rights and security at the Iran-focused nonprofit Miaan Group, suggested that Israel may have obtained information through cyber intrusions into Iranian systems. Rashidi also remarked on longstanding suspicions that the IRGC uses cryptocurrencies to evade sanctions.
“Many of these cases might involve exchanges or entities not directly controlled by the IRGC but linked to it, akin to financial institutions or private companies,” Rashidi explained.
This incident is part of a broader pattern of Israeli actions targeting Iran’s cryptocurrency assets. In June 2025, amid heightened tensions during the Twelve-Day War, a hacking group believed to be affiliated with Israel, known as Predatory Sparrow, compromised Iran’s largest crypto exchange, Nobitex. The group stole approximately $90 million worth of cryptocurrency and rendered it unusable by transferring it to inaccessible wallets. Intelligence firms including Elliptic and TRM Labs have previously reported that Nobitex was utilized by the IRGC.
FinOracleAI — Market View
The seizure of $1.5 million in cryptocurrency tied to the IRGC highlights ongoing geopolitical risks impacting crypto markets, particularly those involving sanctioned entities. The current funds seized are relatively small compared to the total transaction volume, suggesting limited immediate financial impact. However, increased regulatory scrutiny and potential cyber operations against illicit crypto use by sanctioned groups could elevate compliance costs and operational risks for exchanges and service providers.
Investors should monitor further state-sponsored actions and regulatory developments targeting crypto assets linked to sanctioned organizations, which could influence market sentiment and liquidity in related tokens like USDT.
Impact: Neutral
