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US freezes $131M in Iran-linked crypto as Middle East tensions rise
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The United States Treasury has ordered the freezing of over $130 million in cryptocurrency linked to Iran, escalating financial pressure amid rising Middle East tensions. Treasury Secretary Scott Bessent confirmed on Tuesday that the funds were held in wallets tied to the Central Bank of Iran, following an on-chain investigation by blockchain firm Specter. The action targets the misuse of digital assets by the Iranian regime to bypass sanctions and fund illicit activities.
This freeze comes as the ceasefire between the US and Iran collapses, with renewed US naval blockades and airstrikes against Iranian positions. The US military's Central Command announced new strikes, while Iran claimed drone attacks on Jordan's Al Azraq Air Base. The move is part of Operation Economic Fury, launched in March 2025, which has so far seized roughly $1 billion in Iranian crypto assets according to Bessent's May statement.
The stablecoin issuer Tether froze four Tron wallets holding $131 million in USDt at the request of US authorities. Earlier this year, Tether had already frozen over $344 million in USDT linked to Iran in a similar operation. Blockchain data suggests Iran-linked entities have moved billions through exchanges like CoinEx, with TRM Labs reporting $3.8 billion in such transactions.
The freezing of these assets has immediate implications for Iran's ability to finance its military operations and evade economic sanctions. By cutting off access to stablecoins, the US aims to degrade the financial infrastructure supporting Iran's drone and missile programs. This move also signals a broader crackdown on crypto usage by sanctioned nations.
Treasury Secretary Bessent emphasized the administration's commitment to disrupting Iran's illicit financial networks. "Through Economic Fury… Treasury has frozen the Iranian regime's assets, severely disrupted its economy, and dismantled the Iranian war machine," he stated in June. The Treasury Department continues to target foreign procurement networks aiding Iran's military.
Looking ahead, experts expect further asset freezes as US-Iran hostilities intensify. The Treasury may expand its targeting of crypto exchanges and wallets used by Iranian proxies. However, the effectiveness of such measures depends on global cooperation, as crypto transactions can be rerouted through decentralized platforms.
The US government's aggressive stance on Iran-linked crypto is likely to influence other nations' regulatory approaches. As digital assets become more intertwined with geopolitical conflicts, international frameworks for monitoring and freezing such funds may become more critical. The situation remains fluid, with potential for more dramatic financial measures if tensions escalate.
