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

In its latest move to disrupt Iran's financial networks, the US Treasury Department has frozen $344 million in cryptocurrency, citing the country's attempts to circumvent sanctions. Treasury Secretary Scott Bessent stated that the Office of Foreign Assets Control (OFAC) is targeting multiple crypto wallets linked to Iran, resulting in the freeze of a substantial amount of cryptocurrency. Bessent emphasized that the US will trace and target all financial channels tied to the Iranian regime as part of its 'Economic Fury' campaign. This development follows Tether's decision to blacklist two blockchain addresses holding $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 links to the Central Bank of Iran. The Treasury Department believes that Iran's central bank is increasingly relying on digital assets to conceal cross-border transactions. Authorities have observed that Iran is using more complex transaction patterns to disguise its involvement in cross-border payments and support trade flows despite sanctions. The US is working with blockchain analytics firms and financial institutions to track illicit flows tied to sanctioned entities, and has also sanctioned a China-based refinery for its role in Iran's oil economy.