Argentina Freezes Digital Wallets Tied to Terrorism Financing
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Argentina Issues Freeze Orders on Crypto Wallets Linked to Suspected Terror Financing
Argentina has taken decisive action against the potential misuse of cryptocurrency in terrorism financing. The country’s Financial Information Unit (UIF), its chief watchdog for anti-money laundering and counter-terrorism efforts, has imposed administrative freeze measures on several crypto wallets suspected of being connected to Hay’et Tahrir Al-Sham (HTS), a Syrian terrorist group affiliated with Al Qaeda.
According to the UIF’s investigation, two individuals are at the center of the suspected financial network: one is a Russian national currently residing in Argentina, and the other is a foreign national already identified by the U.S. Department of the Treasury and Israel’s National Bureau for Counter Terror Financing (NBCTF). Authorities believe both may be collaborating with HTS.
Although the U.S. State Department recently revoked HTS’s designation as a Foreign Terrorist Organization (FTO), the group continues to be classified as a terrorist entity by various international counter-terrorism agencies.
There is no evidence suggesting the funds were intended for terrorist acts within Argentina. However, as a member of the Financial Action Task Force (FATF), Argentina is obligated to take preventive action when there is credible risk of international terrorism financing.
The UIF initiated the freeze following tips from both domestic and international intelligence sources. A federal judge reviewed the case and authorized the freeze on the crypto assets.
Sources close to the matter stated: “As an initial measure, all wallet activity and fund transfers carried out or attempted by the suspect have been frozen. From here, additional steps will be taken with judicial oversight.”
These same sources noted that the transaction chain linked to the wallets contains addresses potentially associated with other illicit organizations, though they declined to provide further specifics.
