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Israel Sanctions 37 Crypto Wallets Tied to IRGC Financing Network

Defense officials say the orders are intended to block funds to Hezbollah as part of efforts to disrupt Iran’s proxy funding.

Overview

  • Israel’s defense minister signed orders targeting 37 cryptocurrency wallets Wednesday, the Defense Ministry and the National Bureau for Counter Terror Financing said.
  • Authorities say the wallets held more than NIS 24 million and that an internal analysis found the wider network moved tens of millions of dollars to groups linked to Iran.
  • The NBCTF led the probe with Israel’s intelligence agencies and framed the sanctions as a legal, financial tool to deny the IRGC cash for proxies rather than a military strike.
  • Officials and analysts warned the move underscores how Iran’s networks use crypto to evade sanctions and could prompt retaliatory steps from Tehran or its allied militias.
  • Observers will watch for responses that affect regional diplomacy and markets, with near-term signs to track including official Iranian statements, Hezbollah reactions, and shifts in deal or market sentiment.