Tether has frozen $USDT balances across all 131 TRON addresses linked to ISIS-K, acting on a sanctions update issued by the U.S. Treasury's Office of Foreign Assets Control (OFAC) on July 1,
Tether has frozen $USDT balances across all 131 TRON addresses linked to ISIS-K, acting on a sanctions update issued by the U.S. Treasury's Office of Foreign Assets Control (OFAC) on July 1, 2026.
OFAC updated its ISIS-K designation on July 1, adding 134 crypto wallet identifiers, including 131 TRON addresses and three Monero addresses.Tether froze the USDT balances on all 131 of the TRON wallets named, according to blockchain analytics firm Chainalysis.
Chainalysis said the 131 TRON addresses received more than $1.4 million since 2023, and the same wallets sent out more than $880,000 over that period.The blockchain analytics firm noted that several listed wallets had exposure to mainstream services and also sent funds to Syria-based crypto exchangers.
ISIS-K has leveraged crypto for fundraising through its media wing, al-Azaim Media Foundation, using digital assets as a way to move money across borders without touching traditional banking rails.
OFAC's designation covered 134 crypto wallet addresses in total: 131 on the TRON blockchain and three on the Monero network. The Monero addresses present a different problem entirely, since Monero is a privacy-focused cryptocurrency with no central issuer capable of freezing funds.Adding those addresses to the sanctions list serves more as a compliance signal to exchanges: if funds from these addresses are detected, there is a legal obligation to block them.
Chainalysis said the July 1 actions require virtual asset service providers and financial institutions to update sanctions screening and transaction monitoring. The firm also labeled the relevant addresses in its products, giving compliance teams a way to detect exposure to the newly listed ISIS-K wallets and related networks.
The action fits a broader pattern of Tether working alongside regulators. Tether works with more than 340 law enforcement agencies across 65 countries, and that cooperation has supported more than 2,300 cases globally, leading to the freezing of more than $4.4 billion in assets.
The move is a clear illustration of how sanctions enforcement now operates in the crypto era: a government names on-chain addresses, and a stablecoin issuer can neutralize the funds on them almost instantly.
Sources:Crypto.news: Tether freezes USDT in 131 ISIS-K-linked TRON walletsCrypto Times: Tether Freezes 131 ISIS-K TRON Wallets Post US SanctionsTether.io: Tether's Law Enforcement Cooperation
