US Freezes $344 Million in Tether's USDT, Citing Iran Sanctions

The US Treasury Department has frozen $344 million in cryptocurrency as part of a broader effort to disrupt financial networks linked to Iran. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control (OFAC) has sanctioned multiple crypto wallets connected to Iran, resulting in the freeze of $344 million in cryptocurrency. Bessent stated that the US will track and target all financial channels tied to the Iranian regime as part of its 'Economic Fury' campaign. The move follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. US officials claim that the sanctioned wallets have significant ties to the Iranian regime, including transactions with Iranian exchanges and connections to wallets associated with the Central Bank of Iran. The Treasury Department believes that Iran's central bank is using digital assets to conceal cross-border transactions. Authorities say that Iran is increasingly relying on cryptocurrency 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 taking aggressive action against both traditional front companies and the use of digital assets, while also working with blockchain analytics firms and financial institutions to track illicit flows tied to sanctioned entities.