US Freezes $344 Million in Tether's USDT, Citing Ties to Iran Regime

In its latest move to disrupt Iranian financial networks, the US Treasury Department has frozen $344 million in cryptocurrency. According to Treasury Secretary Scott Bessent, this action is part of a broader initiative known as 'Economic Fury', aimed at targeting all financial channels linked to the Iranian regime. The freeze is a result of the Treasury's Office of Foreign Assets Control (OFAC) sanctioning multiple crypto wallets with ties to Iran. This development follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. The US official stated 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 believes Iran's central bank is using digital assets to conceal cross-border transactions. As the Iranian regime increasingly relies on crypto to circumvent restrictions, using complex patterns to obscure transactions, the US is stepping up its efforts to counter these moves. The Treasury's OFAC is working to increase pressure on the regime by targeting both traditional front companies and the use of digital assets. Additionally, the US has imposed sanctions on Hengli Petrochemical (Dalian) Refinery Co., accusing it of playing a key 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.