Israel Uncovers Iran's Cryptocurrency Network Funding Terror Groups Including Hezbollah

Israel's Ministry of Defense has revealed a cryptocurrency-based financial network used by Iran's Islamic Revolutionary Guard Corps (IRGC) to bypass international sanctions and fund terror activities. The National Headquarters for Combating Economic Terrorism, in collaboration with intelligence agencies, uncovered that this digital currency infrastructure facilitated the transfer of tens of millions of dollars to Iranian proxies in the region, primarily Hezbollah.

On Wednesday, Defense Minister Israel Katz imposed sanctions on 37 cryptocurrency wallets linked to the IRGC, collectively holding assets worth 24 million shekels. These wallets served as a key funding channel, circumventing banking restrictions and the logistical challenges of cash transfers. Katz emphasized that the fight against Iran extends beyond the battlefield to disrupting the financial resources that fuel terrorism.

The investigation highlighted an increased reliance on these crypto channels by Hezbollah, especially following significant losses in recent conflicts with Israeli forces. Katz stated, "Every dollar prevented from reaching the Revolutionary Guards through these means is a dollar that will not fund Iran's terror proxies. Israel will continue to target these financial pipelines wherever and however possible."

This disclosure follows recent reports exposing Iran's alternative methods to generate billions of dollars, including a covert maritime oil trading network in the Strait of Hormuz. The IRGC reportedly uses shell companies, intermediaries, and a "shadow fleet" of oil tankers to evade sanctions and sell oil indirectly.

Israel's actions represent a strategic effort to dismantle the financial mechanisms underpinning Iran's support for groups like Hezbollah, Hamas, and the Houthis, aiming to weaken their operational capabilities through economic pressure.