US Freezes $344 Million in USDT, Citing Iran Regime's 'Financial Lifelines'

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 Iran, resulting in the freeze. Bessent stated that the US will track and target all financial channels supporting the Iranian regime, as part of an initiative known as '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 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. Authorities claim that Iran has been increasingly relying on cryptocurrency to evade restrictions, using complex transaction patterns to disguise its involvement in cross-border payments and support trade flows under sanctions pressure. The 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. for their role in Iran's oil economy. The US agency is collaborating with blockchain analytics firms and financial institutions to track illicit flows tied to sanctioned entities.