US Treasury Secretary Scott Bessent has announced the imposition of sanctions on several cryptocurrency wallets linked to Iran. The decision, taken amid ongoing ceasefire efforts in the Middle East, reflects Washington’s strategy to increase financial pressure on Tehran. Bessent, who has an extensive background in finance and economic policy, was appointed Treasury Secretary in 2023.
Tether freezes USDT in coordination with US authorities
Just a day before this announcement, stablecoin issuer Tether froze a total of $344 million worth of USDT located across two wallets identified by US authorities. In its statement, Tether emphasized that the freezes were carried out in full coordination with the US Office of Foreign Assets Control (OFAC) and law enforcement. Media sources, including CNN, citing unnamed officials, confirmed that the funds involved were connected to Iranian entities.
Scott Bessent underlined the US government’s unwavering approach to sanctions, declaring, “We will track every dollar the Tehran regime attempts to move abroad, targeting all financial networks with links to the regime.”
Iran turns to crypto to bypass sanctions
In recent years, Iran has increasingly relied on cryptocurrencies to circumvent the economic sanctions imposed by the US and its allies. The country, a global leader in Bitcoin mining, has made digital assets an integral part of its economic flow.
A recent report from the Financial Times revealed that Iran has been accepting transit fees from oil tankers traversing the Strait of Hormuz in Bitcoin. By taking payments in cryptocurrency instead of dollars, Iran is working to expand alternative trade channels outside the traditional financial system.
Details of frozen wallets and Iran’s crypto reserves
Blockchain analysis firm Chainalysis estimates that Iran’s total crypto holdings reached as much as $7.8 billion last year. A significant portion of these assets is believed to be under the control of the Islamic Revolutionary Guard Corps, which has developed expertise in transferring millions in cryptocurrencies across private wallets.
The two Tron wallets frozen by Tether had a history of frequent transactions, according to public blockchain records. One account held $213 million in USDT, while the second contained $131 million. Both addresses have now been blacklisted at the smart contract level.
Experts suggest that these actions will further restrict Iran’s access to the global financial system. Nevertheless, observers believe Iran is likely to continue seeking new crypto-based methods to overcome sanctions.
