The US has frozen a crypto wallet with about $130 million that it says is linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), according to the US Treasury Department. US Treasury Secretary Scott Bessent announced the action as part of efforts to stop Iran from using crypto to move money. Officials said the wallet freeze is part of a larger campaign called Operation Economic Fury, which aims to block Iran’s financial network through digital assets.
The action follows recent US military strikes on Iranian coastal bases, adding to pressure on Iran. The Treasury Department has also imposed sanctions on people and groups linked to Iran’s Central Bank and the IRGC-Qods Force. US officials say these sanctions are meant to reduce Iran’s ability to fund its military and allied groups, according to CryptoBriefing.
What is the IRGC?
The Islamic Revolutionary Guard Corps is one of Iran’s most powerful military organizations. The United States has officially labeled the IRGC as a Foreign Terrorist Organization. US officials accuse the IRGC of supporting armed groups such as Hezbollah, which is why it has faced years of sanctions.
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What is an IRGC Crypto Wallet?
An IRGC crypto wallet is a cryptocurrency wallet or digital address believed to be controlled or used by the IRGC. A crypto wallet does not store physical money. Instead, it stores the digital keys needed to access and move cryptocurrencies. According to blockchain analytics firm Elliptic, the IRGC is linked to thousands of cryptocurrency wallet addresses.
Elliptic says the IRGC uses cryptocurrencies because they can help move money outside the traditional banking system. The group is believed to use Bitcoin and Tether (USDT) more than many other digital currencies. These cryptocurrencies are allegedly used to avoid international financial sanctions placed on Iran. The digital assets may also be used to secretly finance the IRGC’s operations.
How did the US freeze the wallet?
The frozen wallet mainly held Tether (USDT) tokens. US authorities used Tether’s smart contract controls to block access to the funds. The freeze happened on the Tron blockchain, where many USDT tokens are issued, according to CryptoBriefing. The action stopped the wallet owner from using the funds without shutting down or affecting the Tron blockchain itself.
How does the IRGC move crypto?
According to Reuters, the IRGC is believed to use both foreign cryptocurrency platforms and Iranian exchanges to move digital assets. One of the exchanges connected to this system is Nobitex, one of Iran’s largest crypto exchanges. Investigators believe these platforms help create a parallel financial system outside the global banking network.
Why is this important?
The wallet freeze is another sign that the US is increasing financial pressure on Iran instead of relying only on military action. Experts say cryptocurrencies are becoming an important part of global sanctions enforcement because governments are now targeting digital assets as well. The latest action shows that even blockchain-based funds can be frozen when issuers like Tether cooperate with authorities.
What happens next?
Officials will watch for any new sanctions or military action between the US and Iran. Investors will also look for statements from US and Iranian leaders that could affect diplomatic talks, according to CryptoBriefing. Analysts say developments around the Iran nuclear negotiations could influence markets and future sanctions.
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