US Freezes $344 Million in USDT, Citing Iran Regime's Financial Network

In a recent move, the US Treasury Department has frozen $344 million in cryptocurrency as part of an effort to disrupt financial networks linked to Iran. According to Treasury Secretary Scott Bessent, the action involves the Office of Foreign Assets Control (OFAC) sanctioning multiple cryptocurrency wallets tied to Iran, resulting in the freeze of $344 million in cryptocurrency. The Secretary stated that the US will target all financial channels supporting the Iranian regime as part of a broader initiative known as 'Economic Fury'. This development follows the blacklisting of two blockchain addresses on Tron by stablecoin issuer Tether, which held a combined $344 million in USDT. A US official revealed that the sanctioned wallets showed significant connections to the Iranian regime, including transactions with Iranian exchanges and links to the Central Bank of Iran. The US Treasury Department noted that Iran's central bank has been attempting to use digital assets to conceal cross-border transactions. Authorities stated that Iran has been increasingly relying on cryptocurrency to circumvent restrictions, using complex transaction patterns to obscure its involvement in cross-border payments and support trade flows under sanctions pressure. The Treasury Department's OFAC is intensifying pressure by taking aggressive action against both traditional front companies and the use of digital assets. Meanwhile, the US sanctioned Hengli Petrochemical (Dalian) Refinery Co., accusing the China-based refineries 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.