OFAC Adds 134 Crypto Wallets to ISIS-K Sanctions Designation
Summary
OFAC added 134 cryptocurrency wallets to its ISIS-K designation; Tether froze balances on 131 TRON addresses. In a separate action, OFAC sanctioned people and companies linked to PCC’s crypto-enabled laundering.
Key points
- The July 1, 2026 OFAC update added 131 TRON and three Monero addresses to the ISIS-K designation.
- The designated TRON wallets received more than $1.4 million and sent more than $880,000 since 2023, according to Chainalysis.
- Tether froze balances on all 131 designated TRON addresses.
- Separately, OFAC designated two Brazilian nationals and four companies linked to PCC.
- OFAC said PCC traffickers used cryptocurrency to move more than $30 million in illicit proceeds from the U.S. to Brazil.
- The designations require affected U.S. persons to block relevant property; foreign financial institutions may face secondary sanctions risks.
Article Details
- Event Type
- OFAC sanctions designations involving cryptocurrency: the agency added 134 wallet addresses to the ISIS-K designation and separately designated two Brazilian nationals and four companies linked to PCC.
- Impact
- The ISIS-K designation covers 131 TRON addresses and 3 Monero addresses; the article reports that Tether froze balances on all 131 TRON addresses. OFAC says PCC traffickers laundered more than $30 million in illicit proceeds and used cryptocurrency to move funds to Brazil. The designations require U.S. persons to block designated parties’ property and interests in property, and foreign financial institutions facilitating transactions risk being cut off from the U.S. financial system. VASPs and financial institutions are advised to update sanctions screening and transaction monitoring.
People
Ali ShafiuISIS-K operative sanctioned by OFAC in 2023; Chainalysis reported that his TRON interacted with exchange deposit addresses also tied to Iranian exchanges.Diego Macedo Gonçalves do CarmoDesignated by OFAC in March 2024 for laundering significant sums for PCC, according to the article.Miloud AbderrahmaneIdentified by Chainalysis as the operative at the center of an investigation involving money moved from mainstream exchanges to Middle Eastern donation campaigns.Stella Stefanie Nunes Henrique de OliveiraBrazilian national designated by OFAC in the PCC-related action.Victor Henrique de Oliveira ShimadaBrazilian national designated by OFAC in the PCC-related action.
Vendors
Chainalysishistorically solicited crypto through donation campaigns on various websites and messaging platforms. Chainalysis has collected historical donation addresses on Tron, Monero, and Bitcoin.TetherSeptember 2015. Today’s sanctions update includes 3 Monero (XMR) addresses and 131 TRON (TRX) addresses. Tether has frozen the balances on all 131 TRON addresses.
Countries
AfghanistanISIS-K is a regional branch of Islamic State that is active throughout Afghanistan, Pakistan, and several former Soviet Union countries in Central Asia. The group has been responsible for numerous terror attacksBrazilBrazil syndicate separately targetedMaldivesIn 2023, OFAC sanctioned Maldives-based ISIS-K operative Ali Shafiu; Chainalysis found that Shafiu’s TRON interacted with exchange deposit addresses that also had ties to Iranian exchanges. And just last month, OFACPakistanISIS-K is a regional branch of Islamic State that is active throughout Afghanistan, Pakistan, and several former Soviet Union countries in Central Asia. The group has been responsible for numerous terror attacksPortugalalong with four companies: Victory Trading, Pixwave, and Wave (Brazil), and Avenidas Flutuantes (Portugal).Russianumerous terror attacks targeting civilians in multiple countries, including Afghanistan, Pakistan, and Russia. Their media branch, al-Azaim Media Foundation, spreads propaganda through the publication Voice ofSyriawallets have heavy exposure to mainstream services. Several of the designated wallets also sent funds to Syria-based crypto exchangers.