US Imposes $344 Million USDT Freeze in Crackdown on Iran's Financial Networks

The US Treasury Department announced on Friday that it has frozen $344 million in cryptocurrency as part of its efforts to disrupt financial networks linked to Iran. Treasury Secretary Scott Bessent stated that the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on multiple cryptocurrency wallets tied to Iran, resulting in the freeze of $344 million in cryptocurrency. Bessent explained that the US will track and target all financial channels connected to the Iranian regime as part of its 'Economic Fury' campaign. This move follows Tether's decision to blacklist two blockchain addresses on Tron, holding a combined total of $344 million in USDT. According to a US official, the sanctioned wallets had significant links 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 using digital assets to conceal its cross-border transactions. Authorities stated 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 Treasury's OFAC is increasing 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 refineries 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 crypto exchanges, to track illicit flows tied to sanctioned entities.