Tether Freezes 131 TRON Wallets After ISIS-K Sanctions Update

Chainalysis traced activity across donation and transfer channels

Chainalysis said the newly sanctioned TRON wallets had received funds since 2023 and had also sent funds over that period. Several sanctioned addresses moved funds to Syria-based crypto exchangers, tying part of the wallet activity to transfer or cash-out infrastructure rather than only donation collection.

The broader wallet cluster had exposure to mainstream services, indicating that some of the addresses interacted with larger crypto service providers. Chainalysis also linked ISIS-K fundraising activity to the al-Azaim Media Foundation, the group’s media arm, which has historically solicited crypto donations through websites and messaging platforms.

Chainalysis said historical individual donations to ISIS-K were generally small, reflecting the modest financial means of many supporters. The firm also stated, “Chainalysis has collected historical donation addresses on Tron, Monero, and Bitcoin.”

The latest action followed a June OFAC action against Syrian money service businesses accused of cashing out funds for ISIS financiers. The files also reference a 2023 OFAC designation of Maldives-based operative Ali Shafiu, whose TRON wallet had interacted with deposit addresses tied to Iranian exchanges, according to Chainalysis.

Tether’s freeze action fits broader stablecoin enforcement activity

Tether’s freeze covered all TRON wallets named in the updated ISIS-K sanctions list. The action placed the stablecoin issuer at the center of the enforcement response because the sanctioned activity involved TRON-based wallets where balances could be frozen.

Tether’s T3 Financial Crime Unit, operated with TRON and TRM Labs, had previously frozen more than $450 million in illicit crypto since its September 2024 debut. Separately, Tether had earlier frozen $344 million worth of USDT in TRON wallets flagged by federal authorities as connected to illicit activity.

Other enforcement-related crypto freezes were also cited. Coinbase previously froze over $3 million tied to Southeast Asian scam networks during the US Justice Department’s Disruption Week.

The latest sanctions also arrived while TRON founder Justin Sun remained involved in litigation with World Liberty Financial, the Trump family’s crypto platform. Justin Sun sued World Liberty Financial in April 2026, alleging the company unlawfully froze his tokens and stripped him of governance rights.

World Liberty Financial later countersued Justin Sun for defamation, accusing him of orchestrating a campaign to suppress the token’s price and then defaming the company after his assets were frozen. Justin Sun had previously been described as one of the largest financial backers of the Trump family’s crypto ambitions.

OFAC also took a separate action on Wednesday, July 1, 2026, against two Brazilian nationals and four companies tied to the criminal organization Primeiro Comando da Capital, or PCC. OFAC alleged the sanctioned parties used crypto to move more than $30 million in drug-trafficking proceeds generated in the United States back to Brazil.