Iran's crypto funding of Hezbollah triggers Israeli sanctions and US legislative debate

Israel’s National Bureau for Counter Terror Financing imposed sanctions on 37 cryptocurrency accounts linked to the Iranian Revolutionary Guard Corps (IRGC), which had transferred roughly 24 million shekels to Hezbollah and other proxies. The move aims to disrupt the financial networks supporting Hezbollah amid the ongoing Israel‑Hezbollah conflict.

U.S. Treasury officials warned that Iran is using digital currencies to evade sanctions and finance terrorism, including attempts to coerce ships in the Strait of Hormuz into paying crypto tolls. In response, U.S. lawmakers are debating the CLARITY Act, a bill that would limit anti‑money‑laundering and counter‑terrorism financing obligations for many crypto firms, raising concerns that it could create loopholes for sanctioned actors such as Iran, North Korea, Russia and China.