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

In its latest move to disrupt financial networks linked to Iran, the US Treasury Department has frozen $344 million in cryptocurrency. The action is part of a broader effort, dubbed 'Economic Fury,' aimed at targeting the financial lifelines of the Iranian regime. Treasury Secretary Scott Bessent stated that the US will pursue and disrupt all financial channels that Tehran is attempting to utilize outside of the country. The Office of Foreign Assets Control (OFAC) has sanctioned multiple cryptocurrency wallets tied to Iran, resulting in the freeze of $344 million in cryptocurrency. This move follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. According to a US official, the sanctioned wallets showed significant links to the Iranian regime, including transactions with Iranian exchanges and connections to wallets associated with the Central Bank of Iran. The Iranian central bank has been attempting to use digital assets to conceal its cross-border transactions. The US authorities have noted that Iran has increasingly turned to 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 Department's OFAC is taking aggressive action against both traditional front companies and the use of digital assets. In a related move, the US sanctioned Hengli Petrochemical (Dalian) Refinery Co., accusing the China-based refinery of playing a significant role in Iran's oil economy. The US agency is working with blockchain analytics firms and coordinating with financial institutions, including cryptocurrency exchanges, to track illicit flows tied to sanctioned entities.