Stablecoin issuer Tether blocked funds in all 131 TRON wallets sanctioned by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) on July 1 as part of the update to the designation of ISIS-Khorasan (ISIS-K).

The action adds 134 cryptocurrency addresses as group identifiers, with 131 on the TRON (TRX) network and 3 on the Monero (XMR) network, according to blockchain analytics firm Chainalysis.

Crypto wallets linked to ISIS-K received more than $1.4 million since 2023

Chainalysis reported that the designated TRON wallets received more than $1.4 million since 2023 and sent more than $880,000. Some of these addresses transferred funds to crypto exchanges based in Syria, while the broader cluster showed significant exposure to traditional services in the sector.

ISIS-K operates in Afghanistan, Pakistan, and parts of Central Asia. In September 2015, the OFAC classified the group as a Specially Designated Terrorist Organization. Its media agency, al-Azaim Media Foundation, has already requested crypto donations through websites and messaging platforms.

According to Chainalysis, historically, individual donations were small, reflecting the financial limitations of supporters.

“Chainalysis collected historical donation addresses in Tron, Monero, and Bitcoin,” the report stated.

The July 1 update follows a June initiative by the OFAC against Syria’s financial services companies that withdrew funds for ISIS operators. Previously, in 2023, the Maldives operator Ali Shafiu was designated, whose TRON wallet interacted with deposit addresses linked to exchanges in Iran, according to Chainalysis.

Tether’s response follows the trend of private companies blocking illicit resources together with government authorities. BeInCrypto showed, in May, that the company’s T3 Financial Crime unit, in partnership with TRON and TRM Labs, has already frozen more than $450 million in illicit crypto since its launch in September 2024.

Exchanges also take part in these efforts. Coinbase blocked more than $3 million linked to scam networks in Southeast Asia during the U.S. Department of Justice’s Disruption Week.

The Tether article blocking 131 TRON wallets linked to the ISIS-K terrorist group was first seen in BeInCrypto Brasil.