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

In its latest move to disrupt Iran's financial networks, the US Treasury Department has frozen $344 million in cryptocurrency, revealing that the action is part of a broader initiative known as 'Economic Fury'. According to Treasury Secretary Scott Bessent, the department's Office of Foreign Assets Control (OFAC) has imposed sanctions on multiple cryptocurrency wallets linked to Iran, resulting in the freeze of $344 million in cryptocurrency. Bessent stated that the US will pursue all financial trails that Tehran is attempting to move outside of the country and target all financial lifelines tied to the regime. The move follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. A US official disclosed 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 Treasury Department noted that Iran's central bank has been utilizing digital assets to conceal cross-border transactions. Authorities pointed out 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's OFAC is intensifying its efforts by taking aggressive action against both traditional front companies and the use of digital assets. The US agency also sanctioned Hengli Petrochemical (Dalian) Refinery Co., accusing the China-based independent refinery of playing a significant role in Iran's oil economy. The US agency continues to collaborate with blockchain analytics firms and maintains coordination with financial institutions, including crypto exchanges, to track illicit flows tied to sanctioned entities.