The US Treasury Department added 134 cryptocurrency wallets linked to the ISIS Khorasan organization to its sanctions list. In the list updated by the US Office of Foreign Assets Control, it was announced that 131 addresses were in the Tron network and 3 addresses were in the Monero network.
The weight of sanctions-listed wallets concentrated on Tron
Sanctioned Tron wallets have received over $1.4 million in assets since 2023, according to Chainalysis data. In the same period, more than 880 thousand dollars were transferred from these addresses. The company also reported that stablecoin issuer Tether has frozen balances associated with 131 Tron wallets that fell under sanctions.
US Office of Foreign Assets Control sanctions 134 crypto wallets linked to ISIS Khorasan; 131 of these were in the Tron network and 3 in the Monero network.
ISIS Khorasan, known as the branch of ISIS in Afghanistan, Pakistan and Central Asia, had previously tried to collect crypto donations on websites and messaging platforms through its media organization, Al Azayim Media Foundation. Chainalysis also stated that some wallets included in the new sanctions list made crypto transfers to Syria-based exchanges.
Mini dictionary: OFAC is the unit within the US Treasury Department that manages sanctions lists. US-related individuals and organizations are prohibited from making transactions with individuals, companies and wallets included in the institution’s list.
The Tron network has been the focus of similar scrutiny before
Tron, founded by Justin Sun, has stood out in the past as one of the networks used by structures targeted by US authorities. Earlier this year, Tether froze $344 million worth of USDT held in Tron wallets that federal authorities deemed linked to illegal activities.
Tron is used as a blockchain network known for its low transaction fees and fast transfer structure. These features can make the network stand out in transfers that carry sanction risk, as well as in legitimate areas of use.
Tensions escalate between Justin Sun and World Liberty Financial
This enforcement move comes in the shadow of Tron founder Justin Sun’s ongoing legal battle with World Liberty Financial, a crypto startup linked to US President Donald Trump’s family. Sun filed a lawsuit against the company in April, claiming that his tokens were unlawfully frozen and his governance rights were taken away.
World Liberty Financial, in a lawsuit filed in Florida on Monday, accused Sun of short-selling the WLFI token and suppressing its price last fall. The company also alleged that Sun waged a smear campaign against the platform after its assets were frozen.
A separate sanctions decision related to Brazil was also announced
In a separate file on Wednesday, OFAC added two Brazilian citizens and four more companies to its sanctions list. US authorities claimed that these structures affiliated with Primeiro Comando da Capital transferred over $30 million of drug revenue obtained in the US to Brazil using cryptocurrency.
