The U.S. Treasury's Office of Foreign Assets Control added 134 crypto wallet addresses linked to ISIS-K to its sanctions list on July 1. Tether then froze USDT balances in the 131 Tron addresses. The wallets had received more than $1.4 million in donations since 2023.
OFAC's action targeted addresses connected to the Islamic State affiliate active in Afghanistan, Pakistan, and Central Asia. Chainalysis reported that the 131 Tron wallets and three Monero addresses had moved funds through donation campaigns run by the group's media wing.
Tether applied its sanctions compliance policy to freeze the Tron balances immediately after the designation. The wallets had sent more than $880,000 onward since 2023, according to on-chain data.
The move highlights how stablecoin issuers can now act directly on listed addresses. It follows Tether's earlier freezes of over $344 million in coordination with U.S. authorities this year.
OFAC also sanctioned a separate Brazil-linked network tied to the PCC criminal group, which laundered more than $30 million using crypto.
