In a significant move, Israel’s Ministry of Defense has announced the seizure of 187 cryptocurrency wallets that are reportedly associated with Iran’s Islamic Revolutionary Guard Corps (IRGC). This action underscores the ongoing tensions in the region and highlights the increasing scrutiny of cryptocurrency as a tool for financing terrorism.
The National Bureau for Counter Terror Financing (NBCTF) released a detailed document outlining the seizure, asserting that these cryptocurrency wallets are indeed owned by the IRGC and are allegedly utilized for serious terrorist activities. This declaration reflects Israel’s commitment to combating financial networks that support terrorism.
The IRGC has been designated as a terrorist organization by several nations, including the United States and the European Union, which adds a layer of international concern regarding its financial operations.
According to blockchain analytics firm Elliptic, the wallets in question have processed a staggering $1.5 billion in Tether’s stablecoin, USDT, over time. However, Elliptic’s co-founder, Tom Robinson, noted that they cannot definitively confirm the ownership of these wallets by the IRGC. He also mentioned that the wallets currently contain only $1.5 million, a mere fraction of the total funds that have flowed through them.
Despite inquiries, Israel’s Ministry of Defense has not provided further details on how they established the connection between these wallets and the IRGC, leaving many questions unanswered.
In a recent blog post, Elliptic pointed out that some of the identified addresses might be managed by cryptocurrency services, suggesting that they could be part of a broader wallet infrastructure serving multiple clients. This raises concerns about the complexities of tracing cryptocurrency transactions and the potential for misidentification.
Amir Rashidi, a digital rights and security expert from a nonprofit organization focused on Iran, speculated that Israel may have obtained information about these wallets through cyber operations against Iranian infrastructure. He noted that there have long been suspicions regarding the IRGC’s use of cryptocurrency to bypass international sanctions.
Interestingly, this is not the first instance of Israel targeting Iranian cryptocurrency assets. During a recent conflict, a hacking group believed to be linked to the Israeli government successfully infiltrated Iran’s largest cryptocurrency exchange, resulting in the theft of approximately $90 million worth of digital assets, which were subsequently rendered inaccessible.
Crypto intelligence firms have previously indicated that this exchange was utilized by the IRGC, further complicating the landscape of cryptocurrency regulation and enforcement in the context of international relations.