Katz sanctions dozens of IRGC cryptocurrency wallets meant to fund terror

Defense Minister Israel Katz says he has signed off on “sanctions” against dozens of cryptocurrency wallets belonging to Iran’s Islamic Revolutionary Guard Corps, worth NIS 24 million ($8 million), that were intended to fund Hezbollah and other proxy groups.

The Defense Ministry’s National Bureau for Counter Terror Financing (NBCTF) has in the past confiscated crypto wallets that Israel says were used to fund terror. It is unclear if the sanctions announced today against the 37 IRGC wallets mean that they were seized.

In a statement, Katz’s office says that an investigation by the NBCTF and other intelligence bodies found that the wallets were used to “transfer funds to Iranian-backed terror organizations, primarily Hezbollah, which requires funding sources following the severe damage it sustained during the fighting against Israel.”

An analysis found that “tens of millions of dollars were transferred” through the wallets to various terror groups over the years, the statement adds.

Cryptocurrencies ostensibly provide a high level of anonymity, making them particularly attractive for financing criminal activity or terrorism.