US Freezes $344 Million in USDT, Citing Iranian Regime's Financial Networks

In a recent effort to disrupt financial networks linked to Iran, the US Treasury Department has frozen $344 million in cryptocurrency. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control (OFAC) has sanctioned multiple crypto wallets tied to Iran, resulting in the freeze. Bessent stated that the US will target all financial channels supporting the regime as part of a broader campaign known as 'Economic Fury.' This move follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. A US official revealed that the sanctioned wallets had significant connections to the Iranian regime, including transactions with Iranian exchanges and links to the Central Bank of Iran. The Iranian government has been attempting to use digital assets to conceal cross-border transactions. Authorities have noted that Iran is increasingly relying on crypto to circumvent restrictions, using complex transaction patterns to obscure its involvement in cross-border payments. The Treasury Department's OFAC is taking aggressive action against both traditional front companies and the use of digital assets. The US agency is working with blockchain analytics firms and coordinating with financial institutions to track illicit flows tied to sanctioned entities.