US Freezes $344 Million in USDT, Citing 'Economic Fury' Against Iranian Regime

On Friday, the US Treasury Department announced that it had frozen $344 million in cryptocurrency as part of its efforts to disrupt financial networks linked to Iran. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control (OFAC) has imposed sanctions on several cryptocurrency 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 linked to the Iranian regime as part of its 'Economic Fury' campaign. The move follows Tether's decision to blacklist two blockchain addresses on Tron, holding a combined total of $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 intermediary addresses linked 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 claim that Iran has been increasingly using cryptocurrency to bypass restrictions, employing 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 on both traditional front companies and the use of digital assets. The US agency also sanctioned Hengli Petrochemical (Dalian) Refinery Co., accusing the China-based refinery of playing a significant role in Iran's oil economy. The US agency continues to work with blockchain analytics firms and coordinates with financial institutions, including crypto exchanges, to track illicit flows tied to sanctioned entities.