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

In its latest move to disrupt Iran's financial networks, the US Treasury Department has frozen $344 million in cryptocurrency, citing links to the Iranian regime. According to Treasury Secretary Scott Bessent, the department's Office of Foreign Assets Control (OFAC) has sanctioned several cryptocurrency wallets tied to Iran, resulting in the freeze. Bessent stated that the US will pursue all financial avenues used by Tehran and target any lifelines connected to the regime as part of the 'Economic Fury' campaign. 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 the Central Bank of Iran. The Iranian government has been attempting to use digital assets to conceal cross-border transactions. Authorities claim that Iran has been using complex transaction patterns to disguise its involvement in cross-border payments and support trade under sanctions pressure. The Treasury Department's OFAC is increasing pressure by taking aggressive action against both traditional front companies and the use of digital assets. The US has also imposed sanctions on Hengli Petrochemical (Dalian) Refinery Co., accusing it of playing a significant role in Iran's oil economy. The US agency is working with blockchain analytics firms and coordinating with financial institutions to track illicit flows tied to sanctioned entities.