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

The US Treasury Department announced on Friday that it has frozen $344 million in cryptocurrency 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 sanctioned several crypto wallets tied to the Iranian regime, resulting in the freeze of $344 million in cryptocurrency. Bessent stated that the US will target all financial channels supporting the regime, as part of a campaign known as 'Economic Fury'. 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 wallets associated with the Central Bank of Iran. The Treasury Department believes that Iran's central bank is using digital assets to conceal cross-border transactions. Authorities claim that Iran has been increasingly using crypto to bypass restrictions, employing complex transaction patterns to obscure its involvement in cross-border payments and support trade flows under sanctions pressure. The Treasury's OFAC is intensifying its efforts against both traditional front companies and the use of digital assets, while also sanctioning companies like Hengli Petrochemical (Dalian) Refinery Co., accused of playing a major 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.