U.S. Treasury Sanctions 134 Crypto Wallets Linked to ISIS-K Terror Network

Key Points

• U.S. Treasury’s OFAC designated 134 digital currency addresses connected to ISIS-K operations, comprising 131 TRON wallets and 3 Monero addresses
• These addresses processed more than $1.4 million in incoming transactions since 2023 and dispatched over $880,000 in outgoing transfers
• Tether immediately froze all wallet holdings on the 131 TRON-based addresses after the official designation
• OFAC simultaneously sanctioned two Brazilian citizens and four business entities connected to PCC criminal organization, responsible for laundering over $30 million through digital currencies
• Blockchain analytics companies such as Chainalysis have integrated the sanctioned addresses into their tracking systems

On July 1, 2026, the Office of Foreign Assets Control (OFAC), an agency within the U.S. Treasury Department, expanded its sanctions registry to include 134 digital wallet addresses associated with ISIS-Khorasan, the terror group’s branch operating in Afghanistan and Pakistan.

The designation encompasses 131 addresses on the TRON network and 3 on Monero. Following the announcement, Tether immediately took enforcement action by freezing assets held in all 131 TRON wallets.

ISIS-K received its initial designation as a Specially Designated Terrorist Group in September 2015. The organization maintains operations throughout Afghanistan, Pakistan, and certain Central Asian territories, conducting violent attacks against civilian populations in multiple nations.

The terror group’s propaganda division, known as al-Azaim Media Foundation, has leveraged cryptocurrency fundraising campaigns to secure operational funding. These solicitation efforts have been distributed through various websites and encrypted messaging services, accepting donations in TRON, Monero, and Bitcoin.

Transaction Activity in Sanctioned Addresses

The 131 TRON wallets included in this enforcement action accumulated incoming transfers exceeding $1.4 million from 2023 onward. During the same timeframe, these addresses dispatched outgoing transactions totaling more than $880,000.

Blockchain forensic investigation reveals the wallets interacted with legitimate cryptocurrency platforms. Multiple addresses also transferred funds to cryptocurrency exchange services operating in Syria, based on data from Chainalysis.

This enforcement action represents the latest in a series of OFAC measures against ISIS cryptocurrency financing. In 2023, the agency sanctioned a Maldives-based ISIS-K operative whose TRON wallets maintained connections to Iranian crypto exchanges. A month prior to this current action, OFAC sanctioned a Syrian network of money service operations used to convert funds for ISIS financial facilitators.

PCC Criminal Network Faces Concurrent Sanctions

In a coordinated enforcement measure issued the same day, OFAC imposed sanctions on two individuals from Brazil and four corporate entities linked to Primeiro Comando da Capital, commonly referred to as PCC.

PCC represents a major Latin American criminal enterprise headquartered in São Paulo with operational presence within the United States. According to OFAC’s findings, the organization processed more than $30 million in narcotics-related revenue, utilizing digital currencies to transfer illicit proceeds from the United States to Brazil.

This marks OFAC’s third enforcement action targeting PCC. The organization initially received its designation in December 2021. A subsequent action in March 2024 targeted a specific individual engaged in financial laundering activities for the criminal network.

According to monitoring conducted by TRM Labs, the aggregate transaction volume across all 134 newly sanctioned addresses exceeds $2 million.

Blockchain compliance providers, including Chainalysis, have confirmed integration of the designated addresses into their surveillance platforms, enabling financial institutions to conduct exposure assessments.

For digital asset service providers and banking institutions, these designations mandate immediate revisions to sanctions screening protocols and transaction surveillance infrastructure.

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