Israel's Ministry of Defense Orders Seizure of 187 Crypto Wallets Believed to be Linked to Iran's IRGC
On Monday, Israel's Ministry of Defense announced that it had ordered the seizure of 187 cryptocurrency wallets allegedly belonging to Iran's Islamic Revolutionary Guard Corps (IRGC). The move comes amid allegations that the IRGC has been using cryptocurrencies to evade sanctions and fund its activities.
The National Bureau for Counter Terror Financing, part of Israel's Ministry of Defense, claimed that it was "convinced that the cryptocurrency wallets" in question are property of the IRGC. The bureau stated that these wallets have been used to perpetuate a severe terror crime.
Blockchain monitoring firm Elliptic reported that the named wallets have received $1.5 billion over time in Tether's stablecoin USDT. However, Tom Robinson, co-founder and chief scientist of Elliptic, cautioned that the company cannot confirm whether these wallets indeed belong to the IRGC.
"The current balance of these wallets is a fraction of what it used to be," said Robinson. "This suggests that some of the funds have been moved or frozen."
Israel's Ministry of Defense did not provide an explanation for how it was able to establish a link between the 187 wallets and the IRGC.
Amir Rashidi, director of digital rights and security at the Iran-focused nonprofit Miaan Group, speculated that Israel may have obtained information about these wallets by hacking into Iran's infrastructure. "There were always rumors that the IRGC was using cryptocurrency to circumvent sanctions," he said.
"Some of the addresses may be controlled by cryptocurrency services and could be part of wallet infrastructure used to facilitate transactions for many customers," explained Rashidi. This suggests that the wallets in question are not directly linked to the IRGC, but rather connected through a network of intermediaries.
This is not the first time Israel or Israeli-aligned groups has targeted Iran's government cryptocurrency stash. In June, during the Twelve-Day War between Israel and Iran, a hacking group called Predatory Sparrow believed to have links to Israel's government hacked Iran's largest crypto exchange Nobitex.
The hackers stole around $90 million worth of crypto from Nobitex and then "burned" it by sending it to inaccessible wallets, effectively destroying the digital funds. Crypto intelligence firms like Elliptic and TRM Labs previously stated that Nobitex was used by the IRGC.
While Israel's Ministry of Defense claims that the 187 crypto wallets are linked to the IRGC, experts caution that the connection is not always clear-cut. The use of cryptocurrencies raises complex questions about national security, sanctions, and the role of technology in modern conflict.
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