Tether Freezes Terror-Linked Crypto Wallets as U.S. Sanctions ISIS-K Addresses

TLDR

• OFAC added 134 crypto wallet addresses to its sanctions list linked to ISIS-K, including 131 TRON and 3 Monero addresses
• The wallets have received over $1.4 million since 2023 and sent over $880,000
• Tether froze all 131 TRON-based wallet balances following the designation
• In a separate action, OFAC sanctioned two Brazilians and four companies tied to the PCC crime group, which laundered over $30 million using crypto
• Crypto compliance firms like Chainalysis have already labeled the addresses in their monitoring tools

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) updated its sanctions list on July 1, 2026, adding 134 cryptocurrency wallet addresses tied to ISIS-Khorasan, the Islamic State’s Afghan and Pakistani affiliate.

The update includes 131 wallets on the TRON blockchain and 3 Monero addresses. Tether, the stablecoin issuer, moved quickly to freeze the balances on all 131 TRON-based wallets.

ISIS-K was first designated a Specially Designated Terrorist Group in September 2015. The group operates across Afghanistan, Pakistan, and parts of Central Asia, and has carried out attacks targeting civilians in several countries.

The group’s media arm, al-Azaim Media Foundation, has used crypto donation campaigns to raise funds. These campaigns have appeared on websites and messaging platforms, collecting funds in TRON, Monero, and Bitcoin.

How the Wallets Were Used

The 131 TRON addresses at the center of this action received over $1.4 million since 2023. They also sent more than $880,000 during that period.

On-chain analysis shows the wallets had exposure to mainstream crypto services. Several also sent funds to Syria-based crypto exchangers, according to Chainalysis.

This is not the first time OFAC has taken action against ISIS-linked crypto activity. In 2023, it sanctioned a Maldives-based ISIS-K operative whose TRON wallets connected to Iranian exchanges. Last month, OFAC sanctioned a network of Syrian money service businesses used to cash out funds for ISIS financiers.

Brazilian Crime Group Also Targeted

In a separate but same-day action, OFAC sanctioned two Brazilian nationals and four companies connected to Primeiro Comando da Capital, known as PCC.

PCC is a Latin American criminal organization with a base in São Paulo and operatives in the United States. According to OFAC, the group laundered more than $30 million in drug proceeds, using cryptocurrency to move money from the U.S. back to Brazil.

This is OFAC’s third action against PCC. The group was first designated in December 2021. A further designation followed in March 2024 targeting an individual involved in laundering funds for the group.

The combined total of transfers across the 134 newly sanctioned addresses is over $2 million, according to monitoring by TRM Labs.

Crypto compliance firms including Chainalysis say they have already added the flagged addresses to their monitoring platforms, allowing financial institutions to screen for exposure.

For virtual asset service providers and banks, the designations require immediate updates to sanctions screening and transaction monitoring systems.

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