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

In its latest move to disrupt Iranian financial networks, the US Treasury Department has frozen $344 million in cryptocurrency, as part of a broader initiative known as 'Economic Fury'. According to Treasury Secretary Scott Bessent, the department's Office of Foreign Assets Control (OFAC) has imposed sanctions on several crypto wallets linked to Iran, resulting in the freeze of $344 million in cryptocurrency. Bessent stated that the US will pursue and disrupt all financial channels used by the Iranian regime, as it attempts to move funds outside of the country. 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 ties 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 increasingly using digital assets to conceal cross-border transactions. Authorities have noted that Iran is turning to crypto to evade 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 intensifying its efforts against both traditional front companies and the use of digital assets, while also sanctioning companies like Hengli Petrochemical (Dalian) Refinery Co., accused of playing a key 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.