Sanctions Effort Escalates as American Authorities Tie Iranian Interests to Blocked Cryptocurrency Funds Totaling Hundreds of Millions
The Trump administration froze $344 million in crypto assets allegedly linked to Iran, escalating financial pressure on Tehran as diplomatic efforts around the war remain fragile, CNN reported Friday.
The report builds on Tether’s disclosure Thursday that it supported the US government in freezing $344 million in $USDT across two addresses after several US authorities shared information about activity tied to unlawful conduct. Tether said the freeze was carried out in coordination with OFAC and US law enforcement, preventing further movement of the funds.
A US official told CNN that the government had information connecting the crypto to Iran, including transactions with Iranian exchanges and intermediary wallets that allegedly interacted with Central Bank of Iran associated wallets. CNN said it had not independently corroborated that the Tether accounts were linked to Iran.
Treasury Secretary Scott Bessent said Friday that the agency was sanctioning multiple wallets tied to Iran, adding that the US would target financial lifelines connected to the regime.
The freeze highlights Washington’s growing focus on stablecoins as a tool in sanctions enforcement. Tether has previously said it can freeze tokens in response to law enforcement requests, while Reuters reported in February that the company had frozen $4.2 billion in $USDT tied to crime related activity.
Iran’s crypto activity has already drawn scrutiny from US officials and blockchain analytics firms, with investigators examining whether Iranian officials and sanctioned entities were using crypto platforms to evade restrictions. Firms including TRM Labs and Chainalysis have estimated that Iran related crypto flows reached billions of dollars in 2025.
The case also comes as stablecoin issuers face renewed pressure over their role in stopping illicit finance. Tether said it has supported more than 2,300 cases globally across 340 agencies in 65 countries, while regulators have warned that stablecoins remain a key channel for sanctions evasion and money laundering.