CryptoSlate
US authorities have used Tether's control over its dollar-linked USDT stablecoin to immobilize roughly $475 million tied to Iran in less than three months, extending Washington's sanctions reach beyond the traditional banking system. On July 14, OFAC sanctioned four Tron wallets holding about $131 million in USDT linked to the Central Bank of Iran, also known as Bank Markazi. Treasury Secretary Scott Bessent said the action was part of a broader effort to disrupt revenue networks Washington accuses Iran of using to evade sanctions, and that authorities would continue tracing and restricting the funds. The freeze came as hostilities around the Strait of Hormuz intensified, with US Central Command announcing fresh strikes on Iranian military targets and resuming restrictions on maritime traffic into Iranian ports.
Why it matters
The July action builds on Tether's April freeze of more than $344 million across two other Tron wallets, which the company said it executed in coordination with OFAC and US law enforcement. Together the two freezes have immobilized about $475 million, and by late May Bessent said US authorities had seized or frozen nearly $1 billion in crypto connected to Iran across the wider campaign. That campaign, an enforcement initiative called Operation Economic Fury, has already sanctioned four Iranian-linked exchanges (Nobitex, Bitpin, Ramzinex, and Wallex) and reached deep into the country's on-ramps. Chainalysis estimated Iran's crypto ecosystem received more than $7.78 billion in 2025, with addresses linked to the IRGC accounting for roughly half of that activity.
Market impact
The freezes expose a defining difference between USDT and truly permissionless assets. No central party can normally stop a Bitcoin address from transacting; USDT, by contrast, is administered by Tether, which can blacklist addresses and prevent tokens from moving even as balances stay visible on-chain. In certain cases Tether can also cancel tokens at one address and reissue an equivalent amount elsewhere, giving law enforcement the ability to relocate value under legal authority.
Frequently asked questions
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How much USDT has Tether frozen in connection with Iran?
Roughly $475 million in two actions: $344M across two Tron wallets in April, and about $131M across four Tron wallets tied to Iran's central bank on July 14, 2025.
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Which US agency is directing the freezes?
The Office of Foreign Assets Control (OFAC) at the Treasury Department, under a broader initiative called Operation Economic Fury. Treasury Secretary Scott Bessent has publicly confirmed the actions.
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How can Tether freeze funds on a public blockchain?
Tether controls the USDT smart contract. It can blacklist addresses, preventing tokens from being moved or redeemed, even as balances remain visible on-chain. In some cases it can also cancel tokens at one address and reissue an equivalent amount elsewhere.
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How large is Iran's crypto market?
Chainalysis estimated Iran's crypto ecosystem received more than $7.78 billion in 2025, with addresses linked to the IRGC accounting for roughly half of that activity.
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What other Iranian crypto targets has the US sanctioned?
In June, OFAC sanctioned four Iranian-linked exchanges (Nobitex, Bitpin, Ramzinex, and Wallex) that Treasury said processed a substantial share of Iran's digital-asset activity and helped the Central Bank of Iran acquire stablecoins.
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