US Freezes $344 Million in Tether's USDT, Citing Iran Regime Ties

In a recent move to disrupt Iran's financial networks, the US Treasury Department has frozen $344 million in cryptocurrency, as part of its 'Economic Fury' campaign. Treasury Secretary Scott Bessent stated that the Office of Foreign Assets Control is targeting multiple 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, and to sever all financial ties to the regime. This action follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. According to a US official, the sanctioned wallets have been linked to the Iranian regime through transactions with Iranian exchanges and intermediary addresses connected to the Central Bank of Iran. The Treasury Department has noted that Iran's central bank has been utilizing digital assets to conceal cross-border transactions. As a result, authorities have seen an increase in the use of crypto to bypass restrictions, with more complex transaction patterns being used to obscure involvement in cross-border payments and support trade flows under sanctions pressure. The Treasury's Office of Foreign Assets Control is increasing pressure by taking aggressive action against both traditional front companies and the use of digital assets. Additionally, the US has sanctioned a China-based refinery, accusing it of playing a significant role in Iran's oil economy. The US agency continues to collaborate with blockchain analytics firms and financial institutions, including crypto exchanges, to track illicit flows tied to sanctioned entities.