US Treasury Blocks 100+ Crypto Wallets Linked to Terrorist Group ISIS-K

The US government just cracked down on cryptocurrency being used to fund terrorism.

On Wednesday, the U.S. Treasury's Office of Foreign Assets Control (OFAC) — the department in charge of enforcing financial sanctions (rules that ban people or groups from using the financial system) — added 134 crypto wallet addresses to its blacklist. A crypto wallet is like a digital bank account for holding cryptocurrency, and each has a unique address.

These wallets are linked to ISIS-K, a violent extremist group active in Afghanistan, Pakistan, and Central Asia. The group allegedly used its media arm to ask supporters online for crypto donations.

Here are the key numbers:

• 134 addresses sanctioned in total — 131 on Tron (a blockchain network for moving digital money) and 3 on Monero (a privacy-focused cryptocurrency that hides transaction details).
• The wallets received over $1.4 million since 2023.
• The wallets sent out more than $880,000.
• Donations were also spotted historically on Bitcoin.

Here's the interesting part: Tether, the company behind USDT (a "stablecoin" — a crypto coin designed to always be worth $1), stepped in and froze the money in all 131 Tron wallets. Because Tether controls its own coin, it can lock funds when governments issue sanctions. This shows how private crypto companies now help enforce government rules — Tether froze $182 million in similar cases back in January.

The Treasury also went after a second target: a network connected to PCC, described as Latin America's largest criminal gang. This group laundered (secretly moved and disguised) over $30 million in illegal money, using crypto to send funds back to Brazil.

The bottom line: This action shows that crypto isn't as anonymous or untouchable as some believe. Governments and companies can track and freeze digital money used for illegal purposes — a growing tool in fighting crime and terrorism.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/policy/2026/07/02/us-treasury-sanctions-over-100-isis-k-crypto-addresses-in-latest-enforcement-action