Israel Freezes 187 IRGC-Linked Crypto Wallets Worth $1.5M in Major Security Crackdown
Digital assets face another regulatory reckoning as authorities target illicit financing networks.
Operation Breakdown
Israeli authorities just seized 187 cryptocurrency wallets tied to Iran's Revolutionary Guard Corps—freezing $1.5 million in suspected illicit funds. The move signals growing government sophistication in tracking blockchain transactions that once promised anonymity.
Regulatory Muscle Flexing
This isn't just about freezing assets—it's about demonstrating that crypto isn't the untraceable haven some bad actors still imagine. Governments are getting better at connecting digital dots, and this seizure proves they're willing to act on that intelligence.
Market Implications
While purists might decry government overreach, mainstream adoption requires cleaning up crypto's wild west reputation. Every high-profile seizure makes institutional investors breathe a little easier—even if it means another blow to 'financial freedom' fantasies.
Because nothing says 'secure investment' like watching governments routinely freeze millions in digital assets—but hey, at least the transaction fees are lower than traditional banking.
Questions on attribution
Elliptic’s Co-Founder, Tom Robinson, noted that while the wallets had large transaction volumes, the firm could not independently confirm whether they belonged to the IRGC. He also pointed out that some of the addresses may belong to cryptocurrency services and be part of a larger infrastructure used by multiple customers.
Digital rights expert Amir Rashidi of the Miaan Group suggested Israel may have obtained intelligence through hacking Iranian systems. He added that IRGC-linked financial operations often rely on intermediaries such as exchanges and companies that appear to be private.
Broader context of IRGC’s crypto use
This is not the first confrontation involving Iran’s crypto holdings. Back in June 2025, a pro-Israel hacking group called Predatory Sparrow hit Iran’s biggest crypto exchange, Nobitex. They stole about $90 million worth of digital assets, then “burned” the funds by sending them to inaccessible wallets. Nobitex has long been suspected of having ties to the IRGC.
Before that, in December 2024, the U.S. Treasury went after crypto wallets linked to the IRGC-Qods Force that had handled around $332 million in USDT. And just recently, the U.S. Justice Department seized nearly $585,000 in USDT from Iranian businessman Mohammad Abedini, who allegedly supplied navigation systems for the IRGC’s Shahed drones.
With regulators, agencies, and blockchain experts working together now, it’s getting harder for groups like the IRGC to MOVE funds around. The goal is simple: to protect digital finance and keep global security in check.
Also Read: Trump-Backed WLFI Freezes 272 Wallets Over Security Threats
