Israel dismantles $1.5 billion Iranian terror crypto network

In June, a pro-Israel hacking group dubbed “Gonjeshke Darande” devastated Iran’s largest cryptocurrency exchange Nobitex to the tune of $90 million.

By Jewish Breaking News

Israeli authorities have dismantled a massive cryptocurrency network tied to Iran’s Revolutionary Guard, blocking access to digital wallets that handled over a billion in suspected terror funding.

Defense Minister Israel Katz signed an administrative seizure order Monday targeting 187 cryptocurrency wallets linked to Iran’s Islamic Revolutionary Guard Corps.

While the wallets processed $1.5 billion over time, they currently hold $1.5 million, which Israeli authorities have now frozen.

“Pursuant to my authority according to section 56b of the Anti-Terrorism Law 5776 — 2016 and having been convinced that the cryptocurrency wallets specified in the list are property of the designated terrorist organization Iran’s Revolutionary Guards, or property used for the perpetration of a severe terror crime as defined by the law, I hereby order the seizure of the property,” Katz wrote in the seizure order.

Israel joins the United States and European Union in designating the IRGC as a terrorist organization, providing legal backing for such enforcement actions.

However, blockchain monitoring firm Elliptic cautioned it cannot independently verify whether the wallets actually belong to the Revolutionary Guard.

“Some of the addresses may be controlled by cryptocurrency services and could be part of wallet infrastructure used to facilitate transactions for many customers,” Elliptic said in a statement.

Israel’s latest action represents the latest in a series of moves targeting Iranian cryptocurrency operations. In June, a pro-Israel hacking group dubbed “Gonjeshke Darande,” devastated Iran’s largest cryptocurrency exchange Nobitex to the tune of $90 million.

Last December, the U.S. Treasury Department sanctioned cryptocurrency addresses that had received $332 million.

Meanwhile, U.S. authorities have pursued their own parallel enforcement campaign. On Friday, the Justice Department announced seizing $584,741 in Tether cryptocurrency from Iranian national Mohammad Abedini, who operates San’at Danesh Rahpooyan Aflak Company.

Abedini’s firm manufactures the Sepehr Navigation System used in IRGC military drones, including the Shahed UAV that killed three U.S. servicemembers in a January 2024 attack on Tower 22 base in Jordan.

Between 2021 and 2022, prosecutors say approximately 99% of the company’s navigation system sales went directly to the IRGC Aerospace Force.