The U.S. Treasury’s Office of Foreign Assets Control, or OFAC, expanded sanctions tied to ISIS K by adding 134 cryptocurrency wallet identifiers to the group’s record. According to Chainalysis, the update covers 131 wallets on TRON and 3 on Monero, widening restrictions on addresses linked to the network.
Chainalysis traced activity across sanctioned wallets
Chainalysis said the sanctioned TRON wallets had received more than $1.4 million since 2023, while over $880,000 was sent out during the same period. The transaction volume points to sustained on-chain activity before the addresses were blacklisted. The firm also said some of the sanctioned TRON wallets interacted with mainstream crypto services, and in certain cases routed funds to crypto conversion services operating from Syria.
Tether moved to block balances in listed TRON addresses
After the sanctions update, Tether froze all USDT held in the TRON addresses named on the revised list. Government agencies hold the legal power to impose sanctions. Still, stablecoin issuers can freeze tokens on public blockchains at the technical level, and Tether’s centralized control over USDT allows it to act once enforcement requests are received.
Chainalysis said the freeze showed active coordination between Tether and law enforcement agencies. The report did not disclose the amount of USDT frozen in this latest action, but it made clear that every newly sanctioned TRON address was covered.
Recent compliance actions have grown in size
The move came after Tether recently froze $344 million in USDT held across two TRON wallets flagged by U.S. authorities for suspected illegal activity. That operation ranked among the company’s largest compliance actions so far.
Tether has said it has frozen more than $4.4 billion in digital assets while working with authorities, with about $2.1 billion tied to requests from U.S. agencies. The company also said it has supported more than 2,300 investigations involving 340 institutions across 65 countries. The latest sanctions update puts added pressure on financial institutions and virtual asset service providers to screen the newly designated wallet addresses for potential exposure.