Crypto Wallets in Argentina Flagged in Global Terror Case Wallets Frozen in Argentina Over Suspected Terror Funding Route

Argentina is cracking down on the use of cryptocurrency in cases tied to international terrorism, as authorities freeze digital wallets allegedly connected to the financing of extremist groups. The country’s Financial Information Unit (UIF), which oversees anti-money laundering and anti-terror financing, moved quickly after receiving alerts from both local and international sources.

Good to Know

• Hay’et Tahrir Al-Sham (HTS) was recently removed from the U.S. FTO list but is still flagged by international agencies.
• Argentina is required under FATF standards to intervene in cases tied to global terrorism financing.
• One of the suspects currently lives in Argentina and is a Russian national.

The Financial Information Unit (UIF), Argentina’s agency responsible for investigating financial crimes, has moved to block access to several cryptocurrency wallets. The decision came after reports pointed to possible use of digital funds to support Hay’et Tahrir Al-Sham, a group previously linked to Al Qaeda.

Although HTS is no longer listed as a Foreign Terrorist Organization by the U.S. State Department, it hasn’t been cleared by global counter-terrorism entities. That’s enough for the UIF to step in under existing financial oversight rules.

The UIF launched its investigation after receiving tips from both a domestic source and an international counterpart. The lead was strong enough for the unit to bring the case before a federal judge, who signed off on an administrative freeze.

According to local officials close to the case, the immediate priority was locking down every known wallet associated with the main suspect’s activities. “As a first step, it was decided to freeze all wallets and fund movements that he had made or attempted to make,” one source said. “From now on, other measures will be intensified with the intervention of the Justice system.”

One of the two individuals under investigation is reportedly a Russian citizen living in Argentina. The other has been flagged by both the U.S. Treasury and Israel’s National Bureau for Counter Terror Financing. Their crypto transactions have raised red flags, and investigators believe their wallet histories may link them to additional unlawful groups, though no names were disclosed.

For now, there’s no evidence suggesting any of the funds were intended for operations inside Argentina. Still, the UIF said it’s obligated to act when risks of international terror financing surface, regardless of where the violence might happen.

The case adds to growing international concern over the use of cryptocurrencies in bypassing traditional financial systems for illicit purposes. While digital assets offer transparency on-chain, cross-border enforcement and wallet anonymization continue to create headaches for regulators.