The U.S. Treasury has frozen more than $130 million in cryptocurrency wallets linked to the central bank of Iran.
This action targets the digital infrastructure used to bypass traditional financial systems. By freezing these assets, the U.S. aims to limit Iran's ability to fund activities that destabilize the region amid rising Middle East tensions.
Treasury Secretary Scott Bessent announced the move on Tuesday. He said the Office of Foreign Assets Control froze between $130 million [1] and $131 million [2] in crypto assets. Some reports specify that the frozen funds consisted of USDT, a stablecoin issued by Tether [2].
Bessent said the measure is part of a broader strategy to dismantle the financial mechanisms used by the Iranian government. "This action is part of our broader effort to disrupt Iran’s illicit financing networks," Bessent said [3].
Digital assets have increasingly become a tool for nations under heavy sanctions to move capital across borders without using the SWIFT banking system. The U.S. government has ramped up its monitoring of blockchain transactions to identify and block these wallets.
Bessent said the Treasury Department will remain vigilant in tracking these digital footprints. "We will continue to aggressively follow the money," Bessent said [4].
The sanctions are designed to increase economic pressure on the Iranian government. The Treasury intends to ensure that cryptocurrency does not provide a loophole for the evasion of existing U.S. sanctions laws.
“"We will continue to aggressively follow the money."”
The freeze signals a shift in U.S. sanctions enforcement, moving from traditional banking freezes to the active policing of blockchain networks. By targeting stablecoins like USDT, the U.S. is attempting to close the gap between decentralized finance and state-level sanctions, potentially forcing Iran to seek more volatile or less liquid alternatives for illicit funding.
