Circle and Tether Block Iranian Exchange Wallex's Wallets

Iranian exchange Wallex has been affected by a recent wallet freeze imposed by Circle and Tether. According to on-chain investigator ZachXBT, around $2.49 million in funds is now inaccessible due to the blockage of stablecoin addresses.

The freeze is significant because it shows that there is a pipeline to limit sanctioned crypto usage. However, this move also raises concerns about censorship of legitimate transactions. Iranian exchanges have been operating in crisis mode since early March, with 99% of internet connectivity shut down and electricity losses affecting some operations.