U.S. Treasury Sanctions Over 100 ISIS-K Crypto Wallets, Tether Freezes the Funds

Highlights:

• OFAC added 134 crypto wallets linked to ISIS-K, including TRON and Monero addresses, to sanctions.
• Tether froze all 131 sanctioned TRON wallets, cutting off access to funds tied to ISIS-K.
• Chainalysis said the wallets received over $1.4 million and sent more than $880,000.

The U.S. government has moved against cryptocurrency wallets linked to ISIS-Khorasan, also known as ISIS-K. On July 1, the Treasury Department’s Office of Foreign Assets Control, or OFAC, added 134 wallet addresses tied to the group to its sanctions designation. According to Chainalysis, the list includes 131 addresses on TRON and three on Monero.

Soon after the designation update, Tether froze the funds held in all 131 TRON wallets. The move blocked access to those balances and showed how quickly a major crypto company can respond once sanctioned addresses are identified.

Tether Freezes USDT in All 131 ISIS-K-Linked TRON Wallets

OFAC updated its sanctions list for ISIS-K, adding 134 crypto wallet identifiers, including 131 TRON addresses and three Monero addresses. Chainalysis said the TRON addresses had received more than USD 1.4 million since… pic.twitter.com/53AgCBUGKr

— Wu Blockchain (@WuBlockchain) July 2, 2026

Who Is ISIS-K and Why Crypto Matters Here

ISIS-K is a regional affiliate of the Islamic State that operates across Afghanistan, Pakistan, and parts of Central Asia. The group has claimed responsibility for attacks on civilians in several countries, including Afghanistan, Pakistan, and Russia. The United States designated ISIS-K as a Specially Designated Global Terrorist group in September 2015.

Over the years, the group’s media arm, al-Azaim Media Foundation, has used its publication, Voice of Khorasan, to spread propaganda and seek financial support from followers. Many of those appeals appeared on websites and messaging platforms and directed supporters to cryptocurrency wallets. Chainalysis said it has identified historical donation addresses linked to the group across TRON, Monero, and Bitcoin. The firm added that most of the early transfers were small, suggesting they likely came from individual supporters rather than large funding sources.

Chainalysis Traces ISIS-K Wallet Activity Across TRON

Chainalysis also reviewed the 131 TRON wallets linked to ISIS-K. According to the firm, those addresses have received more than $1.4 million since 2023 and sent out over $880,000. The report said the wallets showed strong links to mainstream crypto services, while several also sent funds to crypto exchangers based in Syria.

The latest action is part of a broader U.S. effort to disrupt the group’s financial network. Three years ago, OFAC sanctioned Ali Shafiu, an ISIS-K operative based in the Maldives. Then, this June, the agency targeted a group of Syrian money service businesses that it said served as cash-out channels for ISIS financiers.

OFAC announced another sanctions action on the same day involving a separate criminal network. The agency sanctioned two Brazilian nationals and four companies tied to Primeiro Comando da Capital, or PCC, a major criminal group in Latin America. According to OFAC, the network laundered more than $30 million in illicit proceeds and used cryptocurrency to move funds back to Brazil.

Tether’s quick response also shows how centralized stablecoins work in practice. Because the company controls the USDT system, it can freeze funds in specific wallets when authorities identify them. That ability makes stablecoins easier to use in sanctions enforcement.

The three Monero wallets listed by ISIS-K are different from the TRON wallets because, unlike other blockchain currencies where all information is openly visible, transactions in Monero are deliberately kept private, making it much harder for anyone to track them down. This is the main reason why investigators target networks such as TRON and Bitcoin more often.