Catenaa, Monday, April 14, 2025-The US Department of the Treasury has imposed new sanctions aimed at dismantling financial networks supporting Yemen’s Houthi movement, specifically targeting cryptocurrency channels. The Office of Foreign Assets Control (OFAC) blacklisted eight crypto addresses allegedly controlled by the Houthis, who are designated as a Specially Designated Global Terrorist (SDGT) entity.
The sanctioned wallets are believed to be involved in funding militant activities, including attacks on commercial shipping in the Red Sea. Two of these wallets have links to Sa’id al-Jamal, an Iran-based financier tied to the Houthis and Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). Other wallets were also linked to terror financing networks identified by Israel’s National Bureau for Counter Terror Financing (NBCTF).
Blockchain analysis firm TRM Labs identified millions of dollars in transactions involving these addresses, with clear connections to Garantex, a Russian crypto exchange already sanctioned by the US The wallets were also found to be linked to suppliers of unmanned aerial vehicle components, suggesting that funds may have been used to procure military equipment.
This latest action is part of a broader US strategy to target the Houthis’ funding sources, both traditional and digital. The US has intensified its pressure on the group following increased attacks on Red Sea shipping, including airstrikes in March 2025.
The Houthis, who control significant portions of Yemen, have used cryptocurrency mining since 2017 to evade sanctions and fund their activities. Their financial operations also rely on local money service businesses involved in laundering funds for military purposes.
