US Freezes $344 Million in USDT, Citing Ties to Iranian Regime

In a recent move to disrupt Iran's financial networks, the US Treasury Department has frozen $344 million in cryptocurrency, as part of a broader initiative known as 'Economic Fury'. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control (OFAC) has sanctioned several crypto wallets linked to Iran, resulting in the freeze. The effort aims to track and disrupt the flow of money that Tehran is attempting to move outside of the country, targeting all financial lifelines tied to the regime. The sanctions follow Tether's decision to blacklist two blockchain addresses on Tron, holding a combined $344 million in USDT. A US official revealed that the sanctioned wallets showed significant links to the Iranian regime, including transactions with Iranian exchanges and connections to wallets associated with the Central Bank of Iran. The Treasury Department noted that Iran's central bank has been increasingly using digital assets to conceal its cross-border transactions. Authorities stated that Iran has turned to crypto to bypass restrictions, using complex transaction patterns to obscure its involvement in cross-border payments and support trade flows under sanctions pressure. The Treasury's OFAC is intensifying pressure by taking aggressive action against both traditional front companies and the use of digital assets. Additionally, the US sanctioned Hengli Petrochemical (Dalian) Refinery Co., accusing the China-based refinery of playing a major role in Iran's oil economy. The US agency continues to work with blockchain analytics firms and coordinate with financial institutions, including crypto exchanges, to track illicit flows tied to sanctioned entities.