$131M in Tether Frozen as US Cracks Down on Iran's Crypto Links

The US Treasury has frozen over $131 million in Tether (USDT) held in wallets linked to Iran's Central Bank. This move comes amid renewed tensions between the US and Iran, with Washington reinstating a blockade of Iranian ports and conducting strikes on targets inside the country.

According to US officials, the frozen wallets were used by Iranian entities to circumvent sanctions, move funds internationally, and finance military programs. The Treasury Department has been actively targeting Iran's cryptocurrency infrastructure, having previously frozen nearly $500 million in cryptocurrency tied to Iran's leadership and affiliated organizations.

The latest operation follows similar actions taken earlier this year, including the freezing of over $344 million in USDT held across two wallet addresses at the request of the Office of Foreign Assets Control (OFAC) and other US agencies. The Treasury Department has stated that its campaign aims to disrupt foreign procurement and payment networks that help Iranian military organizations acquire weapons and evade international sanctions.