U.S. Confiscates $1 Billion in Crypto Assets From Iran in Expanding Sanctions Push

Table of Contents Treasury Secretary Scott Bessent disclosed Friday that the United States has confiscated around $1 billion in digital currency holdings associated with Iran. Speaking at the Reagan National Economic Forum, Bessent stated that officials had “just outright grabbed the wallets.” Bessent on Iran: We have seized about $1 billion of Iran's crypto — just outright grabbed the wallets. Some of them may be typing in right now and might not realize their wallet has been grabbed. This is money that's stolen from the Iranian people. pic.twitter.com/h3ycrJn1Jy — Clash Report (@clashreport) May 29, 2026 Bessent noted that certain wallet holders might still be unaware their assets have been seized. “Some of them may be typing in right now and not have realized that their wallet had been grabbed,” he remarked. This total represents approximately double the $500 million in Iranian digital assets the Treasury Department disclosed in late April. The amount also significantly exceeds the $344 million that was frozen following sanctions imposed by the U.S. Office of Foreign Assets Control on Iran-connected wallets on April 24. These asset seizures form part of a comprehensive financial pressure strategy known as Operation Economic Fury. Initiated in March 2025, the operation aims to dismantle Iranian financial infrastructure across various platforms — encompassing cryptocurrency, traditional banking systems, and international property holdings. The Treasury Department has additionally sanctioned organizations alleged to be providing weapons technology to Iran and blacklisted an Iraqi government official accused of enabling Iranian petroleum transactions in coordination with Iran-aligned militant groups. Bessent indicated the strategy is producing results. He characterized Iran as being “at the end of their Tether now financially.” Prior to U.S. intervention, Iranian leadership allegedly transferred between $400 million and $500 million monthly. These funds were reportedly distributed among approximately 80 high-ranking regime officials. The domestic economic situation within Iran appears increasingly severe. Bessent reported that inflation has potentially exceeded 200%, food distribution programs through vouchers have been implemented, and internet access has been restricted in multiple regions. He further revealed that between 40 and 50 percent of Iranian military personnel are experiencing payment delays, while law enforcement officers are increasingly absent from duty. The Treasury secretary emphasized these circumstances stem directly from the financial offensive targeting the regime. Bessent also addressed the challenging nature of current negotiations with Iran. Diplomatic discussions have grown more complicated due to fragmented leadership following targeted U.S. and Israeli military operations against high-level Iranian officials. The cumulative impact of these military actions, coupled with relentless financial pressure, has significantly undermined Tehran’s position entering potential diplomatic engagements. Despite facing economic hardship, Iran has been investigating methods to leverage cryptocurrency for income generation. Government documents referenced by Fars News Agency — a publication with close ties to the Islamic Revolutionary Guard Corps — described a proposal named “Hormuz Safe.” The initiative would offer digital maritime insurance for vessels navigating the Strait of Hormuz, with premiums paid in Bitcoin and transactions processed via blockchain technology. The proposal reportedly estimates potential revenues exceeding $10 billion. In early April, a representative from Iran’s Oil, Gas and Petrochemical Products Exporters’ Union announced that vessels could secure passage through the strait by remitting a fee of $1 per barrel of petroleum in Bitcoin.