Argentina’s Financial Information Unit (UIF) has frozen cryptocurrency assets linked to two individuals suspected of ties to Hay’et Tahrir al‑Sham (HTS), a Syrian-based militant organization. The action followed the detection of suspicious transactions on domestic crypto exchanges.
UIF Director Paul Starc confirmed that the asset freeze was carried out under Article 6 of Law 27,734, which authorizes the seizure of assets connected to the financing of terrorism. The matter has been referred to Federal Judge María Eugenia Capuchetti for further investigation.
Those implicated include a Russian national currently residing in Argentina and another foreign citizen who has previously been sanctioned by both the U.S. Department of the Treasury and Israeli authorities for alleged involvement in terror financing. Although the financial activity in question involved modest sums, the accounts were flagged due to previous concerns and irregularities.
Authorities stated that, while there is no evidence the funds were intended for operations within Argentina, the suspicious nature of the transactions and their affiliations warranted immediate action.
This is reportedly the first instance in which Argentine authorities have frozen crypto assets in connection with HTS. The group, initially formed through a merger of al-Qaeda-aligned factions, was designated as a Foreign Terrorist Organization by the U.S. until June 2024, when the label was lifted due to political changes in Syria.
The development underscores Argentina’s ongoing efforts to strengthen its anti-money laundering (AML) and counter-terrorism financing (CTF) framework within the digital asset space. In accordance with Financial Action Task Force (FATF) standards, Argentina is introducing new regulatory measures targeting Virtual Asset Service Providers (VASPs) to enhance monitoring and prevent the misuse of cryptocurrencies.
