#US-IranTalksStall

U.S. Official Freezes $US$344 Million in USDT Tether Linked to Iran

A U.S. official announced on Friday that $US$344 million in Tether
USDTUSD
was frozen last Thursday related to Iran. The official linked the blacklisted addresses to transactions flowing through Iranian exchanges and the Central Bank of Iran’s wallet.

Finance Minister Scott Bessent confirmed sanctions targeting the same wallets, describing broader efforts to cut off Tehran’s financial channels as diplomatic attempts to end the deadlocked war stall.

Two Addresses, One Iran Connection

Tether stated on Thursday that it has supported U.S. authorities in freezing $US$344 million in USDT across two addresses. The stablecoin issuer explained this move followed information shared by several U.S. agencies about activities related to legal violations, coordinated through the Office of Foreign Assets Control (OFAC).

A U.S. official told CNN that government analysts, working with blockchain analytics firms, found strong links to the Iranian regime.

Evidence includes confirmed transactions with Iranian exchanges and flows through intermediary addresses interacting with the Central Bank of Iran’s wallet.

The official added that Iran’s central bank is now using increasingly covert methods to hide cross-border digital asset activities. These efforts aim to stabilize the rial’s value and keep trade flows running under sanctions.

“We will track funds that Tehran desperately tries to move abroad and target all financial channels related to the regime,” the report quoted, citing Finance Minister Scott Bessent’s statement on Friday.

Iran Increasingly Relies on Stablecoins

This freezing aligns with patterns noted by blockchain researchers. Chainalysis reported Iranian crypto holdings reaching $7.8 billion by 2025, with the Islamic Revolutionary Guard Corps (IRGC) controlling about half of that amount in the fourth quarter.

The company explained that the two frozen Tether wallets also behaved like known IRGC addresses when still active, transferring tens of millions of U.S. dollars in single transactions, often to personal wallets.

Tehran has repeatedly used stablecoins to evade traditional banking systems.

Earlier this year, Tether and Circle blacklisted a hot wallet belonging to Iran’s exchange Wallex, while U.S. authorities targeted more platforms accused of channeling IRGC funds through USDT on the Tron network.

Debate Over Actual Impact

Not everyone believes this seizure can truly pressure Tehran. Daniel Tannebaum, senior researcher at the Atlantic Council and partner at Oliver Wyman, called the freeze “meaningful,” but warned Iran has been adapting to economic pressure for decades.

“The way to pressure Iran now, since Iran is already heavily sanctioned, is to target third parties helping them,” Tannebaum told CNN, highlighting jurisdictions like China as key next points of detention.

Cyberattacks targeting Iran’s crypto infrastructure have also increased simultaneously.

Last year, pro-Israel hackers drained about $US$90 million from Iran’s largest exchange during a military attack.

The announcement on Friday comes at a critical moment for stablecoin policy. Tether stated they are currently coordinating with over 340 law enforcement agencies in 65 countries and have helped freeze more than $US4.4 billion in assets.

Whether this reach can change how Tehran transfers assets in future transactions remains a question regulators and exchanges need to anticipate.