US freezes $130 million in IRGC crypto wallets: What is the IRGC cryptocurrency and why is it being targeted?
The United States has frozen a crypto wallet worth approximately $130 million that is allegedly linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), according to the U.S. Treasury Department. U.S. Treasury Secretary Scott Bessent announced the action as part of an effort to stop Iran from using cryptocurrencies to move money. Officials said the wallet freeze was part of a larger operation called “Operation Economic Rage” aimed at blocking Iran’s financial networks through digital assets.
Previously, the United States recently carried out military strikes on Iranian coastal bases and increased pressure on Iran. The U.S. Treasury Department also imposed sanctions on individuals and groups with ties to Iran’s Central Bank and the Islamic Revolutionary Guard Corps’ Quds Force. U.S. officials said the sanctions are intended to reduce Iran’s ability to fund its military and allied groups, CryptoBriefing reported.
What is the Islamic Revolutionary Guard Corps?
The Islamic Revolutionary Guard Corps is one of Iran’s most powerful military organizations. The United States has officially designated the Islamic Revolutionary Guard Corps as a foreign terrorist organization. U.S. officials accuse the IRGC of supporting armed groups such as Hezbollah, which is why it has faced sanctions for years.
Also read: Bitcoin ETF attracts $273 million after 8 weeks of outflows: What it means for investors
What is IRGC Crypto Wallet?
An IRGC crypto wallet is a cryptocurrency wallet or digital address believed to be controlled or used by IRGC. Crypto wallets do not store physical currency. Instead, it stores the digital keys needed to access and move cryptocurrencies. According to blockchain analytics firm Elliptic, the IRGC is linked to thousands of cryptocurrency wallet addresses.
Elliptic says IRGC uses cryptocurrency Because they can help move funds outside the traditional banking system. The group is believed to use Bitcoin and Tether (USDT) more than many other digital currencies. The cryptocurrencies are said to be used to avoid international financial sanctions against Iran. These digital assets may also be used to secretly fund the operations of the Islamic Revolutionary Guard Corps.
How does the United States freeze wallets?
The frozen wallet mainly held Tether (USDT) tokens. US authorities used Tether’s smart contract controls to block access to funds. As reported by CryptoBriefing, the freeze occurred on the Tron blockchain, which issues many USDT tokens. The action prevented wallet owners from using funds without shutting down or affecting the Tron blockchain itself.
How does IRGC transfer cryptocurrencies?
According to Reuters, the IRGC is believed to have used foreign cryptocurrency platforms and Iranian exchanges to move digital assets. One of the exchanges connected to this system is Nobitex, which is one of the largest cryptocurrency exchanges in Iran. Investigators believe these platforms help create a parallel financial system outside of the global banking network.
Why is this important?
Wallet freeze is another sign us is increasing financial pressure on Iran rather than relying solely on military action. Cryptocurrencies are becoming an important part of global sanctions enforcement, experts say, as governments now also target digital assets. The latest action shows that even blockchain-based funds can be frozen when issuers such as Tether cooperate with authorities.
What happens next?
Officials will be watching for any new sanctions or military action between the United States and Iran. Investors will also be watching for statements from the leaders of the United States and Iran that could affect diplomatic negotiations, CryptoBriefing reported. Analysts said progress in Iran’s nuclear negotiations could affect markets and future sanctions.
