US Freezes $344 Million in USDT, Citing Ties to Iranian Regime

The US Treasury Department announced on Friday a $344 million cryptocurrency freeze, targeting financial networks linked to Iran. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control is imposing sanctions on multiple crypto wallets tied to Iran, resulting in the freeze of $344 million in cryptocurrency. Bessent stated that the US will track and target all financial channels connected to the regime as part of a broader campaign called 'Economic Fury'. This 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 ties to the Iranian regime, including transactions with Iranian exchanges and connections to wallets associated with the Central Bank of Iran. The Treasury Department noted that Iran's central bank has been using digital assets to conceal cross-border transactions. Authorities claim that Iran has increasingly relied on crypto to circumvent restrictions, using complex transaction patterns to obscure its involvement in cross-border payments and support trade flows under sanctions pressure. The Treasury's Office of Foreign Assets Control is intensifying pressure by targeting both traditional front companies and the use of digital assets. The US agency also sanctioned Hengli Petrochemical, accusing the China-based refinery of playing a major role in Iran's oil economy. The US agency continues to collaborate with blockchain analytics firms and financial institutions to track illicit flows tied to sanctioned entities.