🇮🇱 Israel Seizes 1.5B in Tether Wallets Tied to Iran’s IRGC

Crypto meets geopolitics. Israel has frozen 187 wallets allegedly linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), spotlighting how stablecoins like Tether (USDT) are weaponized in sanctions evasion — and how regulators fight back.

⚡ Quick Hits

• 💸 Value processed: 1.5B USDT
• 👜 Current holdings: 1.5M
• 🔒 Wallets seized: 187
• 🚫 Blacklisted by Tether: 39 wallets
• 🏛️ Legal basis: Israel’s Anti-Terrorism Law (2016)
• 🪖 IRGC status: Terrorist org (Israel, US, EU, Canada, UK)

🕵️ What Went Down

Israel’s NBCTF and Defense Minister Israel Katz ordered the seizure, claiming the wallets either belonged to the IRGC or funded “severe terror crimes.”

Blockchain analytics firm Elliptic confirmed the wallets processed 1.5B USDT, though some addresses may be tied to broader crypto service infrastructure, not just the IRGC.

On September 13, Tether blacklisted 39 wallets, freezing further transactions.

🔗 IRGC & Crypto

This isn’t the first crypto crackdown on the IRGC:

• June 2025: Pro-Israel hackers drained 90M from Nobitex, Iran’s biggest exchange.
• Dec 2024: US Treasury sanctioned addresses tied to 332M USDT funneled to Yemen’s Houthis.
• Sept 2025: US seized 584K USDT linked to IRGC’s drone program.

Despite blockchain’s transparency, crypto still offers sanctioned states liquidity and cross-border payment rails.

🏦 Why It Matters

Stablecoins like USDT are a double-edged sword:

• ✅ Fully traceable on-chain.
• ❌ Still usable for sanctions evasion.
• 🔒 But centralized issuers (like Tether) can blacklist wallets fast when governments intervene.

This seizure shows how crypto, sanctions, and geopolitics are colliding in real time. For exchanges, it’s a reminder: AML/KYC compliance is non-negotiable.

⚡ TL;DR

Israel seized 187 wallets tied to the IRGC, freezing 1.5B in historic Tether flows. While stablecoins give sanctioned states liquidity, their centralized design also makes them easy targets for regulators. Expect more global crackdowns on crypto-sanctions evasion.