The Trump administration has frozen $344 million in cryptocurrency allegedly tied to Iran, marking a significant escalation in economic pressure on Tehran.
The move comes as diplomatic efforts to end regional conflict remain stalled and a tenuous ceasefire continues.
Treasury Secretary Scott Bessent confirmed on Friday that the agency “is sanctioning multiple wallets tied to Iran,” adding, “We will follow the money that Tehran is desperately attempting to move outside of the country and target all financial lifelines tied to the regime.”
Tether, the company facilitating the transactions, announced it had “supported the US government in freezing” the funds across two addresses following information shared “by several U.S. authorities about activity tied to unlawful conduct.”
A US official stated that blockchain analytics provided “evidence of material links to the Iranian regime,” including transactions with Iranian exchanges and routes through intermediary addresses interacting with Central Bank of Iran-associated wallets.
In response to the action, Tether CEO Paolo Ardoino stated, “USD₮ is not a safe haven for illicit activity. When there is credible linkage to sanctioned entities or criminal networks, we act immediately.”
The freeze highlights the increasing reliance of sanctioned regimes on digital assets to bypass traditional banking restrictions.
According to the crypto-tracing firm Chainalysis, Iranian cryptocurrency holdings reached $7.8 billion in 2025, with the Islamic Revolutionary Guard Corps (IRGC) reportedly accounting for half of those holdings.
While Daniel Tannebaum of the Atlantic Council called the freeze “meaningful,” he noted that Iran has long adapted to sanctions, suggesting that “the way to get at Iran at this point… is to go with the third country actors enabling them.”