The Trump administration has frozen $344 million in cryptocurrency believed to be linked to Iran, signaling a sharp increase in economic pressure on Tehran. The decision comes amid stalled diplomatic efforts to resolve regional tensions and a fragile ceasefire that remains in place.
On Friday, Treasury Secretary Scott Bessent confirmed that authorities are sanctioning multiple digital wallets connected to Iran. He emphasized that the U.S. would track funds the Iranian government is attempting to move abroad and target financial channels supporting the regime.
Tether, the company involved in processing the transactions, said it cooperated with U.S. officials to freeze the funds across two wallet addresses after receiving information from several agencies regarding suspected unlawful activity.
A U.S. official noted that blockchain analysis uncovered clear links to the Iranian government, including transactions involving Iranian exchanges and intermediary routes connected to wallets associated with the Central Bank of Iran.
Responding to the development, Tether CEO Paolo Ardoino stated that its stablecoin is not a refuge for illegal activity and that the company takes swift action when credible ties to sanctioned entities or criminal networks are identified.
The move underscores how sanctioned states are increasingly turning to digital assets to work around restrictions in the global banking system.
Data from crypto analytics firm Chainalysis indicates that Iran’s cryptocurrency holdings rose to $7.8 billion in 2025, with the Islamic Revolutionary Guard Corps (IRGC) believed to control about half of that total.
Daniel Tannebaum of the Atlantic Council described the freeze as significant but pointed out that Iran has a long history of adapting to sanctions. He suggested that future efforts may need to focus more on third-party actors who help facilitate such financial activity.
