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

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 Office of Foreign Assets Control (OFAC) has sanctioned multiple crypto wallets tied to Iran, resulting in the freeze. Bessent stated that the US will pursue all financial channels used by Tehran, as part of the 'Economic Fury' campaign. This action follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. The sanctioned wallets reportedly showed significant connections to the Iranian regime, including transactions with Iranian exchanges and links to the Central Bank of Iran. The US has accused Iran of using crypto to circumvent restrictions and obscure cross-border transactions. To counter this, the Treasury's OFAC is increasing pressure on both traditional front companies and digital asset usage. The agency is working with blockchain analytics firms and financial institutions to track illicit flows tied to sanctioned entities, including the recent sanctioning of a China-based refinery accused of supporting Iran's oil economy.