Israel seizes 187 crypto wallets allegedly linked to Iran’s IRGC; experts question evidence and call for deeper blockchain investigation.

Israel’s Ministry of Defense has ordered the seizure of 187 crypto wallets. These wallets are allegedly linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). According to Israeli authorities, the wallets have processed more than $1.5 billion worth of the stablecoin, USDT. But they currently have only about $1.5 million to their name.

NBCTF Claims $1.5B in Crypto Linked to Iranian IRGC

The seizure was announced by Israel’s National Bureau for Counter Terror Financing (NBCTF). In a statement, the bureau said it was “convinced” that the wallets were of the IRGC. It also said that the wallets were used in “severe terror crimes.”

The IRGC is a terrorist organization in the eyes of the United States, the European Union and Israel. Therefore, any financial links to the group are considered as serious threats to global security.

However, there is disagreement among the claims. Blockchain analytical firm Elliptic examined the wallet addresses involved. The firm confirmed that the wallets received $1.5 billion in USDT over a period of time. Yet, Elliptic said it cannot confirm whether the IRGC actually controls the wallets.

Related Reading: Nobitex Exchange Restores Services After $90M Pro-Israel Hack | Live Bitcoin News

Tom Robinson, Elliptic’s co-founder and chief scientist, said the wallets could be of cryptocurrency service providers. This means that they could be used by many unrelated customers. As a result, some addresses may only be a general wallet infrastructure.

In addition, the Ministry of Defense of Israel did not respond to media requests. It is not clear how Israel was able to identify the wallets as IRGC-linked. Some experts believe that the information could have been sourced from cyber intelligence. For example, Amir Rashidi, a digital rights expert at an Iran-focused consulting firm called the Miaan Group, said Israel could have hacked into Iranian systems to obtain the data.

Blockchain Analysts Urge Caution on IRGC Crypto Wallets Links

Rashidi also said that there have been long-standing rumors that the IRGC uses crypto to evade international sanctions. These rumors have been going on for years. Moreover, there have been incidents in the past that suggested such activities.

For example, last June, more than $90 million was allegedly stolen from Iranian crypto exchange Nobitex. A pro-Israel hacking group took credit. Later, Elliptic associated Nobitex with the IRGC. This implies the possibility of some indirect financial links.

In December 2024, the U.S. Treasury Department took action too. It included crypto addresses in its list of sanctions. These addresses had received more than 300 million dollars. And just days ago, the US Justice Department seized upwards of $580,000 from an Iranian national. He was accused of supporting the IRGC’s drone program.

Despite these actions, the direct connection between the wallets and the IRGC cannot be confirmed. Elliptic stressed the wallets were perhaps not directly belonging to the IRGC but rather suspicious. They may rather be related with exchanges or firms with indirect connections.

In conclusion, the seizure is a manifestation of growing international concern about the way in which cryptocurrencies might be used to finance sanctioned entities. While Israel is standing by its claims, blockchain experts caution against assuming all the evidence points directly to Iran’s military forces-within the nation, they say. More investigation may be in order to establish who is actually controlling the funds.