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

In its most recent move to disrupt Iran's financial networks, the US Treasury Department has frozen $344 million in cryptocurrency, as part of a broader initiative dubbed 'Economic Fury'. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control (OFAC) has imposed sanctions on multiple cryptocurrency wallets linked to Iran, resulting in the freeze of $344 million in digital assets. Bessent stated that the US will track and target all financial channels supporting the Iranian regime, as it attempts to move funds outside the country. This action follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. A US official revealed that the sanctioned wallets had 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 noted that Iran's central bank has been utilizing digital assets to conceal cross-border transactions. Authorities claim 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 OFAC is intensifying pressure by taking aggressive action against both traditional front companies and the use of digital assets. Additionally, 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 continues to collaborate with blockchain analytics firms and financial institutions, including crypto exchanges, to track illicit flows tied to sanctioned entities.