Authorities say digital assets were used to fund Hezbollah and other Iran-backed groups
Israel’s Defence Ministry announced on Wednesday that Defence Minister Israel Katz had approved sanctions against 37 cryptocurrency wallets allegedly linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), describing the move as part of a broader campaign to disrupt financial networks supporting armed groups across the Middle East.
According to the ministry, the targeted wallets contain assets worth approximately 24 million shekels (around $7 million) and were allegedly used to channel funds to Iranian-backed organisations, including Hezbollah. Israeli authorities said investigations also indicated that tens of millions of dollars had passed through the digital wallets over several years to finance activities linked to regional proxy groups.
Katz said the campaign against Iran extends beyond military operations and includes efforts to cut off financial resources that support militant organisations. He added that every financial channel disrupted weakens the operational capabilities of groups backed by Tehran.
Financial measures expand pressure on Iranian funding channels
The Israeli announcement follows recent US efforts targeting Iran’s alleged sanctions-evasion networks. Washington launched Operation Economic Fury several weeks ago, aiming to dismantle what US officials describe as Iran’s covert “shadow banking” system and freeze cryptocurrency assets linked to the Iranian government.
US authorities argue that these financial networks enable Tehran to bypass international sanctions and continue funding regional activities despite the longstanding “maximum pressure” campaign.
The US Treasury Department has increasingly relied on sanctions targeting individuals, companies and financial entities accused of facilitating transactions for Iran. Those placed on the Specially Designated Nationals List face asset freezes and exclusion from the US financial system, while businesses dealing with sanctioned entities risk secondary sanctions.
Treasury Secretary Scott Bessent previously said Washington is modernising its sanctions programme to better target sophisticated terrorist financing and sanctions-evasion schemes while reviewing outdated designations.
The latest Israeli sanctions underscore ongoing international efforts to restrict financial channels allegedly linked to Iran and its regional allies, with authorities continuing to focus on cryptocurrency and other digital payment systems as part of broader counterterrorism financing measures.
