The United States Treasury has frozen eight Tron cryptocurrency addresses connected to Houthi rebels. The Treasury’s Office of Financial Assets Control (OFAC) added these wallets to its Specially Designated Nationals and Blocked Persons (SDN) list. The Houthis, an Iran-backed militant group, have launched a series of attacks on Israel and hampered global commerce by striking commercial ships in the Red Sea. The United States retaliated with airstrikes against the militant group in March 2025, and it got wide attention after U.S. officials accidentally added a journalist to a private Signal group with sensitive information about the airstrikes. U.S. targets Houthi funding network tied to Tron wallets and arms purchases According to the United States government, certain Tron wallets have been mapped to a financial network that funds Houthi operations. This network has purchased “tens of millions of dollars” worth of weapons and sensitive technology and looted Ukrainian grain. The transactions fund Houthi activity, such as armed conflicts and missile and drone strikes, and are exacerbating the humanitarian crisis in Yemen. Central to this financial network is a group of entities controlled by Sa’id al-Jamal, an Iran-based financier of the Houthis who has become an important backer of the group. The U.S. declared him a Specially Designated Global Terrorist in 2021 and sanctioned him in 2023 and 2024. Even with these constraints, he continues to employ sophisticated financial techniques—including cryptocurrency—to transfer money and resources. Scott Bessent, the U.S. Treasury Secretary , highlighted the importance of al-Jamal’s network to the Houthis. “The Houthis depend on Sa’id al-Jamal and his network to obtain critical supplies for their war efforts,” he said. He also said the United States was committed to restricting the Houthis’ capacity to undertake destabilizing activity in the region. Under Executive Order 13224 , the U.S. government can freeze assets and impose economic sanctions against organizations and individuals who commit, threaten, or participate in terrorism. By sanctioning these Tron wallets, the U.S. has complicated the Houthis’ ability to obtain funding via virtual currencies. U.S. expands crypto sanctions to disrupt terrorist financing networks Blockchain data shows that these sanctioned Tron wallets have existed since 2023. According to data from Tron block explorer Tokenview , most transactions in the wallets were made using USDT, a stablecoin issued by Tether. International regulators are growing concerned about how terrorist groups are turning to cryptocurrencies to fund their operations. The U.S. Treasury has already levied sanctions over crimes involving the crypto space. Last year, it sanctioned wallets connected to Russian neo-Nazi groups that had been collecting money through digital assets. In 2023, it sanctioned crypto exchanges with ties to Hamas. The new sanctions on the Houthis highlight Washington’s ongoing efforts to thwart terrorist networks around the world from using cryptocurrencies to finance their activities. These sanctions aim to freeze the wallets and cut off a crucial funding source for the Houthis. They also serve as a warning to other groups and individuals against using digital currencies for illegal activities. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
