The United States Treasury's Office of Foreign Assets Control added 134 crypto wallet addresses to its ISIS-Khorasan (ISIS-K) sanctions entry on July 2.
The sanctions target 131 Tron addresses and three Monero addresses tied to the Islamic State affiliate.
The Tron wallets received more than $1.4 million since 2023 and sent out over $880,000, according to blockchain analytics firm Chainalysis .
Related: Gold giant freezes $344 million tied to illicit activity
Treasury tightens grip on illicit crypto donations
Stablecoin issuer Tether (USDT) froze balances on all 131 Tron addresses following the designation, reinforcing the role centralized stablecoin issuers now play in sanctions enforcement.
Tether previously froze more than $182 million in USDT across five Tron wallets in January under its sanctions compliance policy.
ISIS-K, active across Afghanistan, Pakistan and parts of Central Asia, has used its media arm al-Azaim Media Foundation to solicit crypto donations through websites and messaging platforms, Chainalysis said.
The firm identified historical donation addresses tied to the group across the Tron (TRX), Monero (XMR) and Bitcoin (BTC) networks, diversifying across blockchains to obscure fund flows.
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Treasury also targets Brazil's largest criminal network
Alongside the ISIS-K action, OFAC sanctioned a Brazil-linked network tied to Primeiro Comando da Capital (PCC), which Treasury described as Latin America's largest criminal gang.
The network laundered more than $30 million in U.S.-generated illicit proceeds, using crypto to move funds back to Brazil.
Related: Treasury Department hopes to take aim at illicit finance by focusing on crypto
This story was originally published by TheStreet on Jul 2, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
