- US Treasury’s OFAC has sanctioned eight Tron-based USDT crypto wallets linked to Yemen’s Houthi movement, which is designated as a terrorist organization.
- The sanctions make it illegal for US residents and crypto exchanges to transact with these wallets, requiring all US-operated services to block access.
- This action adds to OFAC’s history of targeting crypto wallets and services that facilitate terrorist financing or sanctions evasion.
The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on eight cryptocurrency wallets linked to Yemen’s Houthi movement. According to the Treasury’s official announcement, these wallets have been used by Houthis to facilitate maritime transport and arms deals from Russia for pro-Iran groups operating in Yemen.
The sanctions prohibit US residents from conducting transactions with the designated wallets and require all US-operated cryptocurrency exchanges and services to block access to them. This action aims to prevent the liquidation of assets held by these entities and raise global awareness about their illicit financial activities.
Tether Wallets Targeted in Anti-Terrorism Effort
The eight designated wallets specifically contain tether (USDT) on the Tron blockchain, according to reports. USDT-on-Tron is currently the world’s most popular stablecoin by on-chain transaction volume, despite USDT existing across more than a dozen different blockchains.
OFAC has designated the Houthis, also known as Ansarallah, as a Specially Designated Global Terrorist since February 16, 2024. Today’s sanctions provide additional specificity to that designation by identifying the exact cryptocurrency wallets that service providers should block.
History of Crypto Sanctions
This action continues OFAC’s years-long effort to target cryptocurrency wallets and services involved in financing terrorism and other illicit activities. Previous sanctions in the crypto industry have included exchanges and services such as Garantex, Suex, Hydra, Chatex, Bitpapa, and NetEx24.
These previously sanctioned entities were primarily involved in laundering Ransomware payments or facilitating cryptocurrency transfers with sanctioned banks. The Treasury’s increasingly specific targeting of digital asset wallets demonstrates the growing sophistication of its approach to combating illicit finance in the cryptocurrency ecosystem.
Anyone found transacting with entities on OFAC’s sanctions list faces potential legal consequences, highlighting the importance for cryptocurrency users and service providers to conduct thorough compliance checks.
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