U.S. Freezes $344 Million in Iran-Linked USDT as Crypto Sanctions Tighten

TLDR

• The U.S. Treasury froze $344 million in USDT linked to Iran as part of a campaign called “Economic Fury”
• Tether blacklisted two TRON blockchain addresses holding the funds
• Iran’s central bank has been using crypto to mask cross-border transactions under sanctions
• A second round of U.S.-Iran peace talks may happen this weekend
• The U.S. now holds up to $2 billion in Iran-linked frozen funds

The Trump administration froze $344 million in USDT this week, saying the funds are linked to Iran. The move is part of a broader financial pressure campaign as the U.S. pushes Tehran toward a peace deal.

Treasury Secretary Scott Bessent announced the action on Friday. His department’s Office of Foreign Assets Control, known as OFAC, sanctioned multiple crypto wallets tied to the Iranian regime.

Stablecoin issuer Tether acted Thursday, blacklisting two blockchain addresses on the TRON network. Together, the addresses held $344 million in USDT. Tether said it supported the U.S. government in the freeze.

A U.S. official told CoinDesk the sanctioned wallets showed clear links to the Iranian regime. Those links included transactions with Iranian exchanges and routing through addresses connected to Iran’s central bank.

Iran’s Shift to Crypto

U.S. authorities say Iran has been leaning more heavily on digital assets to get around sanctions. The country has used complex transaction patterns to hide its role in cross-border payments.

Iran’s central bank has tried to mask its activity by moving funds through crypto instead of traditional banking channels. The Treasury said it is working with blockchain analytics firms and crypto exchanges to track these flows.

Separately, Iran reportedly chose Bitcoin over stablecoins for toll payments at the Strait of Hormuz. The reason: Bitcoin is harder for the U.S. to freeze than USDT. The U.S. now holds up to $2 billion in total Iran-linked frozen funds.

The U.S. also sanctioned Hengli Petrochemical, a China-based refinery, on Friday. Authorities accused it of playing a major role in Iran’s oil economy.

Peace Talks Could Resume This Weekend

A second round of U.S.-Iran peace talks may take place this weekend. Trump is sending envoys Steve Witkoff and Jared Kushner to Pakistan to meet with Iranian Foreign Minister Abbas Araghchi.

Vice President JD Vance, who led the first round of talks, is not expected to attend this time. Iran’s Parliament Speaker, who led the Iranian delegation in round one, is also sitting out.

Iran has demanded the U.S. unfreeze its funds as part of any peace deal. Trump has claimed the U.S. blockade at the Strait of Hormuz is costing Iran $500 million per day.

Bitcoin was trading at around $77,800 on Thursday, down slightly from a daily high of $78,400. The asset is still up over 3% on the week.

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