US Freezes $344 Million in USDT, Citing Iran Sanctions and 'Economic Fury'

The US Treasury Department announced on Friday a $344 million cryptocurrency freeze as its latest move to disrupt financial networks linked to Iran. According to Treasury Secretary Scott Bessent, the Treasury's Office of Foreign Assets Control is imposing sanctions on multiple crypto wallets tied to Iran, resulting in the freeze of $344 million in cryptocurrency. Bessent stated that the US will track and target all financial channels connected to the regime, as part of a campaign dubbed 'Economic Fury'. This follows Tether's decision to blacklist two blockchain addresses on Tron, holding $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 wallets associated with the Central Bank of Iran. The Treasury Department noted that Iran's central bank has been using digital assets to conceal cross-border transactions. Authorities stated that Iran has increasingly relied on 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 increasing pressure by taking aggressive action against both traditional front companies and the use of digital assets. Additionally, the US sanctioned Hengli Petrochemical, accusing the China-based refinery of playing a major 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.