US Freezes $344 Million in USDT, Citing Iran Sanctions and 'Economic Fury' Campaign

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. This move is linked to the 'Economic Fury' campaign, which aims to cut off all financial lifelines to the Iranian regime. Treasury Secretary Scott Bessent stated that the Office of Foreign Assets Control (OFAC) has sanctioned several cryptocurrency wallets tied to Iran, resulting in the freeze of $344 million in cryptocurrency. The US is tracking the flow of money that Tehran is attempting to move outside of the country and targeting all financial channels connected to the regime. The freeze follows Tether's decision to blacklist two blockchain addresses holding $344 million in USDT. According to a US official, the sanctioned wallets have significant links to the Iranian regime, including transactions with Iranian exchanges and connections to wallets associated with the Central Bank of Iran. The Treasury Department has accused Iran's central bank of using digital assets to conceal cross-border transactions. Authorities claim that Iran is increasingly relying on cryptocurrency to evade restrictions, using complex transaction patterns to obscure its involvement in cross-border payments and support trade flows under sanctions pressure. The Treasury's OFAC is taking aggressive action against both traditional front companies and the use of digital assets. The US has also sanctioned a China-based refinery, accusing it 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.