US FREEZES $344 MILLION IN IRAN-LINKED USDT, TETHER COOPERATES

The US Treasury Department on Friday confirmed that a $344 million cryptocurrency freeze is part of its latest push to disrupt financial networks linked to Iran. Treasury Secretary Scott Bessent said the Office of Foreign Assets Control (OFAC) is sanctioning multiple crypto wallets tied to the regime, calling the effort part of a broader campaign dubbed "Economic Fury."

Stablecoin issuer Tether confirmed it had cooperated with the action. On Thursday, the company announced it had frozen the funds across two wallet addresses on the Tron blockchain after receiving information from US authorities about activity tied to unlawful conduct. Tether CEO Paolo Ardoino said $USDT "is not a safe haven for illicit activity," adding that the company acts "immediately and decisively" when credible links to sanctioned entities are identified.

Blockchain Evidence Links Wallets to Iranian Regime

A US official told CNN that the government had observed confirmed transactions with Iranian exchanges and funds routed through intermediary addresses connected to wallets associated with the Central Bank of Iran. CNN noted it has not independently corroborated that the Tether accounts were linked to Iran.

Blockchain analytics firm Chainalysis told CNN that when the frozen wallets were active several years ago, they were involved in frequent, large transfers of up to tens of millions of dollars. The scale of Iran's crypto footprint is substantial. Chainalysis estimates that cryptocurrency holdings in Iran reached $7.8 billion in 2025, with the Islamic Revolutionary Guard Corps accounting for roughly half of those holdings in the last quarter of that year.

Part of Broader Iran Sanctions Package

The crypto freeze landed alongside a wider set of sanctions targeting Iran's oil trade. The Treasury also sanctioned Hengli Petrochemical (Dalian) Refinery Co., a China-based independent refinery accused of playing a major role in Iran's oil economy. In total, nearly 40 oil-trade targets were included in the package.

The administration has sought to increase economic pressure on Tehran during the current ceasefire, though analysts caution that the freeze alone may not shift Iran's approach. Daniel Tannebaum, a senior fellow at the Atlantic Council, told CNN the action is "meaningful" but noted that Iran has adapted to decades of sanctions and will continue seeking alternative channels — including crypto — to fund operations.

The case underscores how stablecoins have become a key front in US sanctions enforcement. Tether has previously said it can freeze tokens in response to law enforcement requests, and earlier this year had frozen $4.2 billion in $USDT tied to crime-related activity, according to Reuters.

Sources:

CNN — US Freezes $344 Million in Cryptocurrency Linked to Iran

CoinDesk — Tether's $344M USDT Freeze Linked to US 'Economic Fury'

IBTimes — US Freezes $344 Million in Crypto Tied to Iran