US Freezes $344 Million in USDT, Citing Ties to Iran's Financial Networks

The US Treasury Department announced on Friday a $344 million cryptocurrency freeze as part of its efforts to disrupt Iran's financial networks. Treasury Secretary Scott Bessent stated that the Office of Foreign Assets Control is imposing sanctions on multiple crypto wallets linked to Iran, resulting in the freeze of $344 million in cryptocurrency. Bessent explained that the US will track and target all financial channels tied to the Iranian regime as part of its 'Economic Fury' campaign. This move follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. A US official revealed that the sanctioned wallets have significant connections to the Iranian regime, including transactions with Iranian exchanges and links to 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 been increasingly using crypto to bypass restrictions, employing complex transaction patterns to obscure its involvement in cross-border payments. The Treasury's OFAC is taking aggressive action against both traditional front companies and the use of digital assets. The US also sanctioned a China-based refinery, accusing it of playing a significant role in Iran's oil economy. The US agency is working with blockchain analytics firms and coordinating with financial institutions to track illicit flows tied to sanctioned entities.