Israel seizes 187 crypto wallets allegedly linked to Iran

In a bold move against perceived threats, Israel’s Ministry of Defense has mandated the confiscation of 187 cryptocurrency wallets reportedly connected to Iran’s Islamic Revolutionary Guard Corps (IRGC). The wallets are believed to have received a staggering $1.5 billion in transactions.

The legal notice from the Minister of Defense outlines the specific wallet addresses suspected of belonging to the IRGC, a military and security force established following the 1979 Iranian Revolution to safeguard the Islamic Republic. The IRGC is classified as a terrorist organization by the United States, the European Union, and other countries, including Israel.

“I hereby order the seizure of the property and of any other virtual asset that is found or will be found in the wallets, as stated, in order to confiscate the same subject to the provisions of section 66 of the Law,” stated the Ministry of Defense in the official document.

In response to the Ministry’s announcement, blockchain analysis firm Elliptic conducted a thorough investigation into the wallets. Their findings revealed that out of those listed, approximately 39 were marked “blacklisted” by Tether as of September 13, 2025.

Interestingly, while these wallets had received massive amounts of funding, only a meager $1.5 million USDT remains across them presently.

The Role of Cryptocurrencies in Israel-Iran Tensions

The IRGC has been reportedly leveraging cryptocurrencies for financial support in its operations, long before the recent Israeli crackdown. Just last week, the U.S. Justice Department disclosed their action to seize $584,741 in USDT from the wallets of Iranian national Mohammad Abedini. His business, which produces navigation systems, has purportedly been linked to the IRGC’s drone operations, including the infamous Shahed UAV projects.

Abedini was previously charged in December 2024 for providing material assistance to the IRGC Aerospace Force, a vital segment focused on missile and air defense technologies.

During this tense period, the U.S. also added several cryptocurrency wallets to its sanctions list. These addresses were connected with Sa’id Ahmad Muhammad al-Jamal, implicated in mischanneling $332 million in USDT to the Houthi militant group, Ansarallah, in collaboration with senior IRGC officers.

Adding to the complexities of the crypto landscape, in June 2025, an Iranian exchange named Nobitex suffered a significant breach by a pro-Israel group, losing over $90 million, which was subsequently redirected to wallets advocating resistance against the IRGC. Investigations by Elliptic have revealed connections between Nobitex and the IRGC, especially concerning its use by individuals cited for ransomware activities.