Argentina Authorities Freeze Crypto Wallets Associated with Terrorism Financing

Argentina is stepping up its efforts to stop the use of crypto in the financing of terrorism. The country’s Financial Information Unit (UIF) recently uncovered possible links between local crypto platforms and the Syrian militant group Hay’et Tahrir Al-Sham (HTS), known for its connections to Al Qaeda.

The UIF oversees counter-terrorism funding and anti-money laundering activities in Argentina. The regulator collaborated with blockchain analysts over a six-month period to dig into these activities. Using advanced blockchain tracing software, the experts traced the movement of digital assets across multiple wallets.

Their findings revealed connections to ransom payments and financial transfers possibly directed toward regions affected by war. Some of the funds also appeared to pass through dark web networks.

According to officials, two individuals are under scrutiny. One is a Russian citizen living in Argentina. The other, whose identity was flagged by both the U.S. Treasury Department and Israel’s National Bureau for Counter Terror Financing (NBCTF), is also believed to be a foreign national. Authorities suspect they may be working together in support of HTS.

Although the United States recently removed HTS from its official list of Foreign Terrorist Organizations (FTOs), many international law enforcement bodies still regard it as a terrorist threat.

The UIF stated that there’s no evidence suggesting an immediate threat to Argentina itself. However, under international obligations, specifically those set by the Financial Action Task Force (FATF), the country is required to respond when there are signs of terrorist financing linked to global threats.

The UIF acted on tips from both a local and a foreign source. A federal judge approved the UIF’s request to freeze the crypto assets in question. Local authorities explained that this was just the first move in a broader investigation. The initial step involved blocking access to all associated wallets and stopping any attempts to move funds.

Insiders also mentioned that some of the wallet addresses involved might be linked to other illegal groups, though details on those connections remain undisclosed at this time.

This operation is part of the country’s broader effort to strengthen its anti-money laundering regulations, which were updated in 2023. As part of those reforms, digital currency exchanges are now under tighter surveillance, especially when transactions involve users flagged as high-risk, such as certain nonprofits or politically exposed individuals. Since the implementation of new measures, reports of suspicious transactions have reportedly dropped by 30%.

Major crypto players like Canaan Inc. (NASDAQ: CAN) are unlikely to see any problem with these enforcement actions since they help to weed out bad actors that could give the industry bad press and hinder the inroads being made to take crypto mainstream around the world.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CryptoCurrencyWire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer

CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com

CryptoCurrencyWire is powered by IBN