US sanctions 134 ISIS-K crypto wallets, Tether freezes $1.4M

OFAC sanctioned 134 crypto wallets tied to ISIS-K, leading Tether to freeze 131 TRON wallets with over $1.4M. The move highlights increased regulatory action against illicit crypto use.

On July 1, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) updated its sanctions list, targeting ISIS-Khorasan by adding 134 cryptocurrency wallet addresses. Of these, 131 are on the TRON blockchain and 3 on Monero. In response, Tether froze the balances of all 131 TRON wallets linked to the group. Since 2023, these wallets have received over $1.4 million and sent more than $880,000. Blockchain analytics firm Chainalysis confirmed that the wallets are connected to ISIS-K fundraising and money movement operations. This action is part of a broader regulatory push to combat illicit activities and terrorism financing through cryptocurrencies. OFAC’s designation makes it illegal for U.S. persons and entities to transact with these addresses, requiring immediate compliance from exchanges and custodians. The enforcement highlights the evolving landscape of crypto compliance and the ability of stablecoin issuers to respond swiftly to government sanctions.