Israel Proposes Taking Control of $1.5 Million in Tether Accused of Iran Connection
The National Bureau for Counter Terror Financing (NBCTF) of Israel has published a list of 187 cryptocurrency addresses, alleging that these addresses have received a total of $1.5 billion in Tether's USDT, the fourth biggest digital asset by market cap.
According to Elliptic, a blockchain analytics firm, these addresses received the huge amount of crypto in the form of Tether's USDT, making it the most-traded virtual coin with a 24-hour trading volume of over $101 billion.
The list comes amidst the ongoing tension between Israel and Iran, two arch regional enemies for decades. It is believed that Iran has long used cryptocurrency to circumvent sanctions and, more recently, has been one of the country's biggest Bitcoin miners.
The news follows a high-profile hack on the Iranian cryptocurrency exchange Nobitex, where a pro-Israel hacking group, Gonjeshke Darande, drained $90 million in crypto. The NBCTF has suggested that the crypto across these addresses should be seized.
However, Elliptic could not confirm if all the addresses are directly linked to Iran due to some addresses potentially being controlled by cryptocurrency services. Some addresses may be part of wallet infrastructure used to facilitate transactions for many customers, according to Elliptic.
Compliance firm Crystal Intelligence told Decrypt that many Nobitex customers were likely hit by the hack. Last week, the United States Attorney's Office for the District of Massachusetts filed a civil forfeiture action to recover $584,741 in USDT stablecoins from an Iranian national, suggesting that efforts are being made to freeze USDT linked to criminal activity.
Yet, no publicly known US institution or authority has frozen Tether cryptocurrency linked to Iran's Islamic Revolutionary Guard Corps (IRGC) so far. Tether has worked with law enforcement to freeze USDT linked to criminal activity in the past.
The ongoing saga between Israel and Iran continues to have far-reaching implications, with the crypto market being the latest battleground. The NBCTF's list serves as a reminder of the potential for cryptocurrencies to be used for illicit activities and the need for continued vigilance and cooperation between governments, law enforcement agencies, and the crypto industry.
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