Key Highlights
- The U.S. Treasury designated 134 cryptocurrency addresses connected to ISIS-K, encompassing 131 TRON wallets and 3 Monero addresses
- These addresses processed incoming transactions exceeding $1.4 million and outgoing transfers surpassing $880,000 since 2023
- Tether immediately froze the entire balance of all 131 TRON-based addresses after the sanctions announcement
- A concurrent OFAC action targeted two Brazilian individuals and four entities connected to the PCC criminal organization for laundering more than $30 million through cryptocurrency
- Blockchain compliance providers such as Chainalysis have integrated the sanctioned addresses into their tracking systems
On July 1, 2026, the Office of Foreign Assets Control (OFAC), operating under the U.S. Department of the Treasury, expanded its sanctions registry to include 134 digital currency wallet addresses associated with ISIS-Khorasan, the regional branch of the Islamic State operating in Afghanistan and Pakistan.
The designation encompasses 131 addresses operating on the TRON network alongside 3 Monero wallet addresses. In response, Tether—the company behind the world’s largest stablecoin—acted immediately to freeze all funds held in the 131 TRON addresses.
ISIS-K received its initial designation as a Specially Designated Terrorist Group by OFAC in September 2015. The organization maintains operational capabilities throughout Afghanistan, Pakistan, and sections of Central Asia, having executed violent attacks against civilian populations across multiple nations.
The terrorist organization’s propaganda division, known as the al-Azaim Media Foundation, has orchestrated cryptocurrency fundraising initiatives to generate revenue. These digital solicitation campaigns have been distributed through various websites and encrypted messaging services, accepting contributions in TRON, Monero, and Bitcoin.
Transaction Analysis of Sanctioned Addresses
The 131 TRON wallet addresses included in this enforcement action accumulated incoming transfers totaling over $1.4 million beginning in 2023. During the same timeframe, these wallets dispatched more than $880,000 in outbound transactions.
Blockchain forensic examination reveals the addresses maintained connections to well-known cryptocurrency platforms and services. According to data from Chainalysis, multiple wallets transferred funds to cryptocurrency exchange operators based in Syria.
This latest action represents a continuation of OFAC’s efforts against ISIS cryptocurrency funding networks. In 2023, the agency sanctioned an ISIS-K operative operating from the Maldives whose TRON wallets were linked to Iranian digital currency exchanges. More recently, in the previous month, OFAC designated a network of Syrian money service businesses utilized to convert digital assets into cash for ISIS financial facilitators.
PCC Criminal Network Faces Concurrent Sanctions
In a parallel enforcement action announced the same day, OFAC imposed sanctions on two Brazilian citizens and four corporate entities affiliated with Primeiro Comando da Capital, commonly referred to as PCC.
PCC represents a major Latin American criminal enterprise headquartered in São Paulo with operational cells throughout the United States. Treasury officials state the organization laundered in excess of $30 million derived from narcotics trafficking, utilizing cryptocurrency channels to repatriate funds from the United States to Brazil.
This marks OFAC’s third enforcement action against PCC. The criminal organization initially received its designation in December 2021. An additional designation was issued in March 2024, focusing on an individual facilitating money laundering operations for the syndicate.
Across all 134 newly designated addresses, the aggregate transaction volume exceeds $2 million, based on tracking data compiled by TRM Labs.
Blockchain compliance companies including Chainalysis confirm they have incorporated the newly flagged addresses into their surveillance platforms, enabling financial institutions to identify potential exposure.
For cryptocurrency exchanges, wallet providers, and traditional banking institutions, these designations necessitate immediate modifications to sanctions compliance screening protocols and transaction surveillance infrastructure.
