The U.S. Treasury designated four cryptocurrency wallets linked to the Central Bank of Iran, prompting stablecoin issuer Tether to freeze approximately $131 million in USDT held at the sanctioned addresses. The action follows a designation update by the Treasury Department's Office of Foreign Assets Control (OFAC), which added the four wallet addresses with over $165 million in stablecoin collections. The enforcement action brings the total amount of USDT frozen in wallets tied to Iran's central bank to approximately $475 million, following an earlier $344 million freeze in April.
OFAC Adds Four Wallet Addresses to Central Bank of Iran Sanctions
The newly designated wallets are part of Washington's broader effort to restrict Iran's access to the international financial system through digital assets. OFAC updated its designation for the Central Bank of Iran by adding four cryptocurrency wallet addresses that U.S. authorities say are controlled by or associated with the institution.
U.S. Treasury Secretary Scott Bessent said: "The U.S. Treasury is committed to disrupting and deterring Iran's illicit financial activity, including the misuse of digital assets."
The wallets held over $165 million in stablecoin collections, with roughly $131 million in USDT remaining in the wallets when Tether froze the funds. The sanctions form part of the Treasury's broader enforcement campaign targeting cryptocurrency infrastructure that U.S. officials allege has been used to facilitate sanctions evasion and finance activities linked to the Iranian government.
Tether Freezes $131 Million on TRON Blockchain Wallets
Once the addresses appeared on the sanctions list, Tether exercised its ability as the issuer of USDT to freeze the tokens held in those wallets, preventing them from being transferred or redeemed. The wallets are hosted on the TRON blockchain, one of the most popular networks for USDT transfers due to its low transaction costs and fast transaction speed.
Centrally issued stablecoins like USDT allow issuers to freeze wallets linked to sanctioned entities. That capability has turned companies like Tether into important enforcement partners for governments seeking to restrict the movement of funds across borders.
The timing of this freeze is notable, as it comes shortly after U.S. President Donald Trump declared the U.S.-Iran ceasefire over. USDT has become a key payment rail across emerging markets and cross-border commerce, yet the company is also expected to act swiftly when wallets are designated by OFAC.
FAQ
What did the U.S. Treasury do regarding Central Bank of Iran cryptocurrency wallets?
The U.S. Treasury's Office of Foreign Assets Control (OFAC) designated four cryptocurrency wallets linked to the Central Bank of Iran. The wallets held over $165 million in stablecoin collections, with approximately $131 million in USDT frozen by Tether following the designation.
How much USDT is now frozen in wallets tied to Iran's central bank?
The total amount of USDT frozen in wallets tied to Iran's central bank is approximately $475 million. This includes the recent $131 million freeze and an earlier $344 million freeze that occurred in April.
Why can Tether freeze cryptocurrency in sanctioned wallets?
Tether, as the issuer of USDT, has the technical ability to freeze tokens held in specific wallets. Once wallet addresses appear on OFAC's sanctions list, Tether exercises this capability to prevent the tokens from being transferred or redeemed, making the company an enforcement partner for governments restricting sanctioned entities' access to funds.
