Argentina Freezes Crypto Assets Linked to HTS in First Anti-Terror Enforcement Action

Argentina has frozen cryptocurrency assets linked to individuals associated with Hay’et Tahrir al-Sham (HTS), a Syrian militant group designated as a terrorist organization by the UN and numerous countries. The Financial Information Unit (UIF) identified and seized over 200 crypto wallets connected to two individuals—one a Russian passport holder residing in Argentina and another sanctioned by the U.S. Treasury and Israel—due to suspicious transactions on national exchanges. The freeze, executed under Article 6 of Law 27,734, was reported to Federal Judge María Eugenia Capuchetti and marks Argentina’s first public enforcement action targeting digital assets for terrorism financing [1].

The UIF clarified that while the transactions did not involve large sums, they were traced to accounts flagged for suspicious activity, raising red flags despite no direct evidence of funding for attacks within Argentina. HTS, formed in 2017 through a merger of factions like al-Nusra and al-Qaeda, had its U.S. Foreign Terrorist Organization (FTO) status revoked in June 2024 following Syria’s regime change [2]. The group continues to be labeled a terrorist entity by many nations, including Argentina.

Argentina’s action reflects broader efforts to strengthen anti-money laundering (AML) and counter-terrorism financing (CTF) measures in the crypto sector. The country has introduced Virtual Asset Service Provider (VASP) regulations aligned with FATF standards, emphasizing blockchain analysis and cross-border collaboration. The UIF highlighted that cryptocurrencies’ pseudonymity and decentralized nature complicate traditional financial oversight, prompting Argentina to integrate crypto surveillance into national security frameworks [3].

The seizure underscores the growing global challenge of curbing illicit crypto use. While traditional systems face strict AML rules, digital currencies enable rapid, borderless transfers that evade scrutiny. Argentina’s enforcement aligns with initiatives by agencies like the U.S. Treasury and the EU, which have prioritized monitoring crypto flows for terrorism financing [4]. However, experts note that such actions may push bad actors toward privacy-focused protocols, complicating future enforcement.

The case also raises questions for the crypto industry. Exchanges and wallet providers in Argentina may face heightened compliance obligations, including user verification and suspicious activity reporting. The effectiveness of Argentina’s measures, though, depends on international cooperation, as isolated actions may fail to address the global nature of crypto transactions [5].

This development signals a shift in how governments approach crypto-related risks, balancing innovation with regulation. Argentina’s proactive stance adds momentum to the debate on crypto governance, particularly for countries previously lagging in digital asset regulation.

Sources:

[1] [Bitcoin.com](https://news.bitcoin.com/argentina-freezes-crypto-wallets-linked-to-terrorism-financing/)

[2] [Coinpedia](https://coinpedia.org/crypto-live-news/argentina-freezes-funds-over-suspected-crypto-links-to-syrian-terror-group/)

[3] [Regtechtimes](https://regtechtimes.com/200-crypto-wallets-frozen-in-argentinas/)

[4] [The](https://www.cryptotimes.io/2025/07/28/argentina-freezes-crypto-linked-to-syrian-militant-group/)

[5] [Coinpedia](https://coinpedia.org/)