Blab Crypto
Israel Freezes $8 Million in Crypto Wallets Linked to Irans Revolutionary Guard and Hezbollah
On 1 July 2026, Israel’s Ministry of Defense announced that it had identified 37 digital wallets containing more than NIS 24 million (about $8 million) in cryptocurrencies that were allegedly used by the Islamic Revolutionary Guard Corps (IRGC) to funnel money to Hezbollah and other Iranian‑backed terrorist groups. The Defense Minister, Israel Katz, signed administrative orders to freeze the assets, effectively cutting off the funds from further use.
The investigation was carried out by the National Bureau for Counter Terror Financing (NBCTF), a unit within the Ministry that works closely with Israel’s intelligence and law‑enforcement agencies. The bureau is headed by attorney Yoray Matzlawi and includes representatives from Mossad, the Shin Bet, Military Intelligence, the Israel Police, the Israel Prison Service and the Israel Tax Authority. According to the bureau’s findings, the wallets were part of a broader terrorist‑financing network that had transferred tens of millions of dollars to Hezbollah and other proxies over the years.
The IRGC is a multi‑service branch of the Iranian Armed Forces that was established in 1979. It operates five service branches – Ground Forces, Aerospace Force, Navy, Quds Force and Basij – and is responsible for both internal security and external operations. The Quds Force, in particular, is tasked with unconventional warfare, intelligence and clandestine operations, and has been identified as the arm that supplies and trains groups such as Hezbollah. Israel has designated the IRGC as a terrorist organization, and the group is also listed as such by the European Union, the United States and several other countries.
Hezbollah, the Lebanese Shia Islamist organization, has long maintained close ties with Iran. Since its founding in 1982, it has received military and financial support from the IRGC, especially through the Quds Force. The group is designated as a terrorist organization by many states, including Israel, and has been involved in numerous attacks against Israeli targets.
The NBCTF’s analysis of blockchain transactions showed that the 37 wallets were used to move funds to Hezbollah and other Iranian‑aligned proxies. While the exact amount transferred to each organization was not disclosed, the total value of the assets held in the wallets exceeded NIS 24 million. The Ministry’s decision to freeze the wallets was made under the authority granted to the Defense Minister to act on intelligence assessments and legal opinions without a court proceeding, a power that has been used in previous counter‑terrorism operations.
The freeze also illustrates Israel’s broader strategy to disrupt the financial networks that support hostile actors in the region. By targeting digital assets, the country aims to close a channel that has become increasingly popular for moving money across borders while evading traditional banking scrutiny. The Ministry’s announcement was followed by statements from the NBCTF that the bureau will continue to share intelligence with foreign partners to enable them to take action against the individuals and organizations involved.
The move comes amid ongoing tensions between Israel and Hezbollah, which escalated into open conflict in 2024. The Israeli government has repeatedly warned that any financial support to Hezbollah would be met with swift retaliation. The freeze of the crypto wallets is therefore part of a broader effort to limit the operational capabilities of the group.
At present, the frozen assets remain under Israeli control, and no further details have been released about how the funds will be handled or whether they will be returned to the original owners. The Ministry has not announced any plans to liquidate the assets or to use them for other purposes. The NBCTF will continue to monitor the wallets and related transactions for any new activity.
In summary, Israel’s Ministry of Defense has identified and frozen more than $8 million in cryptocurrency assets linked to the IRGC’s financing of Hezbollah and other terrorist organizations. The action, carried out by the National Bureau for Counter Terror Financing in cooperation with Israel’s intelligence community, underscores the country’s commitment to disrupting the financial flows that support hostile actors in the region.
The investigation was carried out by the National Bureau for Counter Terror Financing (NBCTF), a unit within the Ministry that works closely with Israel’s intelligence and law‑enforcement agencies. The bureau is headed by attorney Yoray Matzlawi and includes representatives from Mossad, the Shin Bet, Military Intelligence, the Israel Police, the Israel Prison Service and the Israel Tax Authority. According to the bureau’s findings, the wallets were part of a broader terrorist‑financing network that had transferred tens of millions of dollars to Hezbollah and other proxies over the years.
The IRGC is a multi‑service branch of the Iranian Armed Forces that was established in 1979. It operates five service branches – Ground Forces, Aerospace Force, Navy, Quds Force and Basij – and is responsible for both internal security and external operations. The Quds Force, in particular, is tasked with unconventional warfare, intelligence and clandestine operations, and has been identified as the arm that supplies and trains groups such as Hezbollah. Israel has designated the IRGC as a terrorist organization, and the group is also listed as such by the European Union, the United States and several other countries.
Hezbollah, the Lebanese Shia Islamist organization, has long maintained close ties with Iran. Since its founding in 1982, it has received military and financial support from the IRGC, especially through the Quds Force. The group is designated as a terrorist organization by many states, including Israel, and has been involved in numerous attacks against Israeli targets.
The NBCTF’s analysis of blockchain transactions showed that the 37 wallets were used to move funds to Hezbollah and other Iranian‑aligned proxies. While the exact amount transferred to each organization was not disclosed, the total value of the assets held in the wallets exceeded NIS 24 million. The Ministry’s decision to freeze the wallets was made under the authority granted to the Defense Minister to act on intelligence assessments and legal opinions without a court proceeding, a power that has been used in previous counter‑terrorism operations.
The freeze also illustrates Israel’s broader strategy to disrupt the financial networks that support hostile actors in the region. By targeting digital assets, the country aims to close a channel that has become increasingly popular for moving money across borders while evading traditional banking scrutiny. The Ministry’s announcement was followed by statements from the NBCTF that the bureau will continue to share intelligence with foreign partners to enable them to take action against the individuals and organizations involved.
The move comes amid ongoing tensions between Israel and Hezbollah, which escalated into open conflict in 2024. The Israeli government has repeatedly warned that any financial support to Hezbollah would be met with swift retaliation. The freeze of the crypto wallets is therefore part of a broader effort to limit the operational capabilities of the group.
At present, the frozen assets remain under Israeli control, and no further details have been released about how the funds will be handled or whether they will be returned to the original owners. The Ministry has not announced any plans to liquidate the assets or to use them for other purposes. The NBCTF will continue to monitor the wallets and related transactions for any new activity.
In summary, Israel’s Ministry of Defense has identified and frozen more than $8 million in cryptocurrency assets linked to the IRGC’s financing of Hezbollah and other terrorist organizations. The action, carried out by the National Bureau for Counter Terror Financing in cooperation with Israel’s intelligence community, underscores the country’s commitment to disrupting the financial flows that support hostile actors in the region.
