Israel seizes $1.5B in cryptocurrency linked to Iran's Revolutionary Guard
- Israel's Ministry of Defense announced the seizure of 187 cryptocurrency wallets linked to Iran's Islamic Revolutionary Guard Corps.
- The seized wallets had facilitated the movement of approximately $1.5 billion, but currently only hold around $1.5 million.
- This action forms part of ongoing international efforts to sanction the IRGC and curb its financing of terrorism.
On September 15, 2025, Israel's Ministry of Defense announced the seizure of a total of 187 cryptocurrency wallets, which have been identified as having received approximately $1.5 billion. The wallets are reportedly connected to Iran's Islamic Revolutionary Guard Corps (IRGC), an organization designated as a terrorist group by both Israel and several other nations, including the European Union and the United States. The action follows ongoing efforts by these countries to curb the IRGC's ability to finance operations deemed threatening to their security interests. The seized wallets had previously facilitated a significant movement of funds over time, yet they currently hold a reduced amount of around $1.5 million, according to official documentation associated with the seizure order. Israel Katz, the Israeli Minister of Defense, cited authority under the Anti-Terrorism Law as the basis for this seizure, deeming the wallets as property of a terrorist organization or used for severe terror crimes. Despite the claim from the Israeli government, blockchain monitoring firm Elliptic expressed caution, stating that they couldn't confirm the ownership or control of the wallets by the IRGC. They highlighted that some of the addresses linked to these funds may belong to cryptocurrency services or serve as part of wallet infrastructure enabling transactions for widespread customers. This distinction raises questions about the exact connections to the IRGC and the implications for broader cryptocurrency infrastructure. The seizure is not an isolated incident; the IRGC has been previously associated with activities utilizing cryptocurrencies to circumvent international sanctions. Such allegations have persisted over the years, with numerous instances pointing to the IRGC's involvement in major financial transactions using digital currency platforms. For example, last December saw the U.S. Treasury sanctioning cryptocurrency addresses linked to a substantial amount of over $332 million, underlining the financial web allegedly spanning across various exchanges and organizations related to the IRGC. Recent actions by the U.S. Justice Department to seize additional funds tied to Iranian national Mohammad Abedini, involved with a navigation systems business purportedly supporting the IRGC’s military drone initiatives, only amplify the narrative that cryptocurrencies have become an avenue for Iran to attempt to bypass sanctions.