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

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'. This development follows a statement by Treasury Secretary Scott Bessent, who outlined the department's plan to target and disrupt all financial channels linked to the Iranian regime. The Office of Foreign Assets Control (OFAC) has sanctioned several cryptocurrency wallets with ties to Iran, resulting in the freeze of $344 million in cryptocurrency. The US Treasury Department's actions come after stablecoin issuer Tether blacklisted two blockchain addresses holding $344 million in USDT. According to a US official, the sanctioned wallets had significant connections to the Iranian regime, including transactions with Iranian exchanges and links to wallets associated with the Central Bank of Iran. The Iranian government has been attempting to use digital assets to conceal cross-border transactions. To counter this, the US authorities are increasing pressure on both traditional front companies and digital asset transactions. The Treasury Department's OFAC has also imposed sanctions on Hengli Petrochemical (Dalian) Refinery Co., a China-based refinery accused of playing a key role in Iran's oil economy. The US agency is working with blockchain analytics firms and financial institutions, including crypto exchanges, to track and disrupt illicit financial flows linked to sanctioned entities.