US Treasury Slams Islamic State Khorasan Province with Crypto Sanctions

On July 1, 2026, the US Treasury's Office of Foreign Assets Control (OFAC) added 134 cryptocurrency addresses linked to the Islamic State Khorasan Province (ISKP) to its Specially Designated National listing.

The addresses have collectively moved over $2 million in transactions, with a significant portion being denominated in USDT, which has been used for years by ISKP for fundraising purposes.

Since 2022, the cryptocurrency financing network of ISKP, which is ISIS's Afghanistan-based affiliate, has continued to grow and adapt, with the group soliciting Monero donations publicly through its Voice of Khurasan magazine in the fall of 2023.

The designation is the second time OFAC has specifically targeted ISKP's use of cryptocurrency, following a similar action in July 2023 against Ali Shafiu, a Maldivian national who served in ISIS-K's media office and controlled a sanctioned crypto address linked to other ISIS-K/ISIS media-unit wallets.