Summary
- Tether froze USDT balances across 131 ISIS-K-linked TRON wallets after OFAC updated its sanctions identifiers.
- Chainalysis said the TRON wallets received over $1.4 million and sent over $880,000 since 2023.
- The action adds pressure on VASPs to update sanctions screening for newly listed crypto addresses.
The move places stablecoin issuer controls at the center of a new terrorism-financing action involving TRON and Monero addresses.
Chainalysis said the U.S. Treasurys Office of Foreign Assets Control updated its ISIS-K designation on July 1. The update added 134 crypto wallet identifiers, including 131 TRON addresses and three Monero addresses.
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“Tether has frozen the balances on all 131 TRON addresses,” said Chainalysis.
OFAC updated its sanctions against ISIS-K, adding 134 cryptocurrency wallets (131 TRON, 3 Monero) as identifiers. In a separate enforcement action, OFAC targeted individuals linked to the Latin American criminal group PCC for laundering illicit proceeds via crypto. Read more…
— Chainalysis (@chainalysis) July 1, 2026
The official OFAC update lists the wallets under ISIL Khorasan, also known as ISIS-K. The group is the Islamic States Afghanistan and Pakistan branch. OFAC had already designated ISIS-K as a terrorist group before adding the new crypto wallet identifiers.
Chainalysis tracks Tether flows across TRON wallets
Chainalysis said the 131 TRON addresses had received more than $1.4 million since 2023. The same wallets sent out more than $880,000 over that period. The blockchain analytics firm said several listed wallets had exposure to mainstream services and also sent funds to Syria-based crypto exchangers.
The report said ISIS-Ks media branch, al-Azaim Media Foundation, has used websites and messaging platforms to seek crypto donations. Chainalysis said it had collected past donation addresses on TRON, Monero, and Bitcoin. The firm also noted that earlier public terrorism-financing campaigns often used smaller donations, rather than a few large transfers.
Stablecoin freeze role keeps growing
The latest freeze follows a wider rise in issuer-level enforcement around USDT. As previously reported, Tethers T3 Financial Crime Unit passed $450 million in frozen suspected illicit assets since its 2024 launch. The unit is backed by Tether, TRON, and TRM Labs, and focuses on USDT activity on the TRON network.
Moreover, Tether froze more than $514 million across 370 addresses during one 30-day period earlier this year. Most of the frozen funds were on TRON. BlockSec data cited in that report showed Tether blacklisted 4,163 addresses in 2025, freezing $1.26 billion across Ethereum and TRON.
Sanctions pressure reaches compliance teams
The ISIS-K action also comes after other terrorism-linked wallet freezes this year. Victims with U.S. terrorism judgments asked a New York court to order Tether to turn over 344,149,759 USDT held in two OFAC-blocked TRON wallets linked to Irans IRGC. That case centers on whether frozen stablecoins can be transferred to judgment creditors.
Chainalysis said the July 1 actions require virtual asset service providers and financial institutions to update sanctions screening and transaction monitoring. The firm also said it labeled the relevant addresses in its products. The step gives compliance teams a way to detect exposure to the newly listed ISIS-K wallets and related networks.