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

The US Treasury Department announced on Friday a significant cryptocurrency freeze of $344 million as part of a broader effort to disrupt financial networks linked to Iran. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control (OFAC) has imposed sanctions on multiple cryptocurrency wallets tied to Iran, resulting in the freeze. Bessent stated that the US will track and target all financial channels supporting the Iranian regime as part of the 'Economic Fury' campaign. The move follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. A US official revealed that the sanctioned wallets had significant connections to the Iranian regime, including transactions with Iranian exchanges and links to the Central Bank of Iran. The Treasury Department noted that Iran's central bank has been utilizing digital assets to conceal cross-border transactions. Iranian authorities have been increasingly relying on cryptocurrency to bypass restrictions, using complex transaction patterns to obscure involvement in cross-border payments and support trade flows under sanctions pressure. The US Treasury's OFAC is taking aggressive action against both traditional front companies and the use of digital assets. Additionally, the US sanctioned a China-based refinery, accusing it of playing a major 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.