US Freezes $344 Million in Tether's USDT, Citing Economic Pressure on Iran

The US Treasury Department announced on Friday that it has frozen $344 million in cryptocurrency as part of a broader effort to disrupt Iran's financial networks. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control (OFAC) has imposed sanctions on multiple crypto wallets linked to Iran, resulting in the freeze of $344 million in cryptocurrency. Bessent stated that the US will track and target all financial channels tied to the Iranian regime, as part of a campaign dubbed 'Economic Fury'. This move follows Tether's decision to blacklist two blockchain addresses on Tron, holding a combined $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 wallets associated with the Central Bank of Iran. The Treasury Department noted that Iran's central bank has been increasingly using digital assets to conceal cross-border transactions. Authorities stated that Iran has been using crypto to circumvent restrictions, employing complex transaction patterns to disguise its involvement in cross-border payments and support trade flows under sanctions pressure. The Treasury's OFAC is escalating its efforts against both traditional front companies and the use of digital assets, according to the official. Additionally, the US sanctioned Hengli Petrochemical (Dalian) Refinery Co., accusing the China-based refinery 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.