Treasury sanctions 134 ISIS-K wallets, Tether freezes USDT

The U.S. Treasury Department has sanctioned 134 cryptocurrency wallet addresses linked to the terrorist group ISIS-Khorasan (ISIS-K), with the stablecoin issuer Tether immediately freezing assets in the majority of them. The action, taken by the Office of Foreign Assets Control (OFAC) on July 1, 2026, targets 131 addresses on the TRON blockchain and three on the Monero network.

According to blockchain analytics firm Chainalysis, the 131 TRON addresses had received more than $1.4 million in cryptocurrency donations since 2023 and had sent out over $880,000. The group's media arm, al-Azaim Media Foundation, has historically solicited such donations through websites and encrypted messaging platforms, accepting funds in TRON, Monero, and Bitcoin. Investigators found that several of the sanctioned wallets had interacted with mainstream cryptocurrency services and sent funds to exchange services based in Syria.

Following the official designation, Tether froze all USDT stablecoin balances held in the 131 TRON wallets. The company stated it cooperates with global authorities to freeze assets involved in illicit activities. This enforcement highlights the growing role of stablecoin...