The U.S. Treasury Department sanctioned 134 cryptocurrency wallet addresses this week tied to ISIS-K, the Islamic State's affiliate operating in Afghanistan, Pakistan, and Central Asia. The Office of Foreign Assets Control (OFAC) added the wallets to existing sanctions, with 131 operating on the Tron blockchain and three on Monero. The action targets ISIS-K's crypto fundraising operations, which have historically solicited donations through websites and messaging platforms via the group's media arm, the al-Azaim Media Foundation.
Sanctioned Tron Wallets Processed Over $1.4 Million Since 2023
The sanctioned Tron addresses received more than $1.4 million since 2023 and sent over $880,000 during that period, according to blockchain analytics firm Chainalysis. Stablecoin issuer Tether froze balances affiliated with all 131 sanctioned Tron wallets. Several of the newly sanctioned wallets sent cryptocurrency to Syria-based exchanges, Chainalysis said.
ISIS-K Media Arm Solicited Crypto Donations Through Digital Channels
ISIS-K's media arm, the al-Azaim Media Foundation, solicited cryptocurrency donations through websites and messaging platforms. The Treasury Department's action targeted wallet addresses connected to these fundraising operations.
Tron Blockchain Previously Linked to $344 Million in Frozen Illicit USDT
Tron, founded by crypto entrepreneur Justin Sun, has a history of usage by entities sanctioned or otherwise targeted by the U.S. government. Earlier this year, Tether froze $344 million worth of USDT in Tron wallets flagged by federal authorities as having connections to illicit activity.
Justin Sun Sued World Liberty Financial in April Over Frozen Tokens
This week's sanctions come as Sun's relationship with President Donald Trump's family has deteriorated. Sun, once among the largest financial backers of the Trump family's crypto ambitions, sued the family's crypto platform World Liberty Financial in April, alleging the company unlawfully froze his tokens and stripped him of governance rights. World Liberty has since countersued for defamation, accusing Sun of orchestrating a campaign to suppress the token's price and then defaming the company after his assets were frozen.
OFAC Sanctioned Brazilian Nationals for $30 Million Drug Trafficking Operation
In a separate action Wednesday, OFAC sanctioned two Brazilian nationals and four companies tied to the criminal organization Primeiro Comando da Capital (PCC), alleging they used cryptocurrency to move more than $30 million in drug trafficking proceeds, generated in the United States, back to Brazil.
FAQ
How many cryptocurrency wallets did the Treasury Department sanction this week?
The Treasury Department sanctioned 134 cryptocurrency wallet addresses tied to ISIS-K, with 131 on the Tron blockchain and three on Monero.
How much money did the sanctioned Tron wallets process since 2023?
According to Chainalysis, the sanctioned Tron addresses received more than $1.4 million since 2023 and sent over $880,000 during that period. Tether froze balances on all 131 sanctioned Tron wallets.
What legal action did Justin Sun take against World Liberty Financial?
Justin Sun sued World Liberty Financial in April, alleging the company unlawfully froze his tokens and stripped him of governance rights. World Liberty has since countersued for defamation.
