US Treasury Hits 134 ISIS-K Crypto Wallets, $1.4M Moved

OFAC also sanctioned a Brazil-linked network tied to the Primeiro Comando da Capital, or PCC, which Treasury described as Latin America's largest criminal gang. The network laundered more than $30 million in U.S.-generated illicit proceeds and used crypto to move funds back to Brazil, according to the Treasury.

For crypto traders, the action reinforces the risk that stablecoin wallets tied to sanctioned entities will be frozen shortly after designation. Tron, because of its low fees and widespread use for USDT transfers, has been a common network for funds moving through less-regulated channels. The inclusion of Monero addresses suggests OFAC is willing to target privacy coins even when the balance cannot be easily confirmed.

Stablecoin issuers such as Tether maintain sanctions-screening tools. The freeze on these addresses was executed shortly after the Treasury's designation, Chainalysis said.

The PCC designation adds another layer: more than $30 million in illicit proceeds was moved through crypto back to Brazil, Treasury said. The network's use of crypto to repatriate funds from the U.S. mirrors methods used by other transnational criminal organizations.