The Trump administration has confirmed that the United States froze $344 million in cryptocurrency tied to Iran, adding a new financial measure to its broader pressure campaign against Tehran. The action focused on USDT held across two wallet addresses and was carried out with help from stablecoin issuer Tether after U.S. authorities shared information about activity they said was linked to unlawful conduct.
According to CNN and statements from U.S. officials, the frozen assets were connected to Iran through transactions involving Iranian exchanges and intermediary wallets that allegedly interacted with wallets associated with the Central Bank of Iran. CNN said it had not independently verified that the two Tether addresses were linked to Iran. Even so, the administration presented the move as part of a wider sanctions push as talks over ending the conflict remain unsettled.
Treasury Secretary Scott Bessent said the U.S. is sanctioning multiple crypto wallets tied to Iran. In a statement, he said Washington would “follow the money” that Tehran is attempting to move outside the country and would target financial lifelines linked to the regime. The case places stablecoins at the center of a sanctions enforcement effort at a time when digital assets are being watched more closely in cross-border finance.
Tether Freeze Adds Stablecoins to Sanctions Enforcement
Tether, which recently expanded its BTC treasury, said it froze the $344 million in USDT across two addresses on the TRON network after receiving information from U.S. authorities. The company said the action was taken in coordination with the Office of Foreign Assets Control and law enforcement agencies, preventing any further movement of the funds. Tether also said it can restrict assets when wallets are linked to sanctions evasion, criminal activity, or other unlawful conduct.
Chief Executive Paolo Ardoino said USDT is not a safe haven for illicit activity and said the company works with authorities in multiple jurisdictions. Tether stated that it has supported more than 2,300 cases worldwide across 340 agencies in 65 countries. It also said it has frozen more than $4.4 billion in total assets so far, including more than $2.1 billion tied to U.S. law enforcement requests.
The latest action shows how public blockchain records can be used in financial investigations. Transactions can be traced through wallet activity, and once addresses are identified, issuers such as Tether can blacklist those funds. That process has become more important as officials and analytics firms continue to examine whether sanctioned actors are using stablecoins and other digital assets to move value across borders.
Pressure on Iran Continues as Talks Remain Uncertain
The freeze comes during a fragile ceasefire period and amid continued U.S. pressure on Iran. Reports tied the action to the broader standoff around the Strait of Hormuz, where President Donald Trump has said U.S. measures are hurting Tehran financially. Trump has also said the blockade is costing Iran about $500 million per day, though that figure remains part of the administration’s public messaging around the conflict.
At the same time, another round of peace talks may take place soon. Reports said special envoys Steve Witkoff and Jared Kushner could travel to Pakistan for talks involving Iranian Foreign Minister Abbas Araghchi. Vice President JD Vance, who took part in the first round, was reported to be on standby rather than expected to attend directly this time.
Iran’s frozen funds have also become part of the wider diplomatic discussion. According to the supplied reports, Tehran has sought the release of some blocked assets as a condition tied to any peace arrangement. That leaves the crypto freeze as both a financial enforcement measure and a development taking place during a tense diplomatic window.
Source: ChainAnalysis
Consequently, the case adds to wider concerns about the role of stablecoins in sanctions evasion and money laundering. Chainalysis said illicit crypto addresses received more than $154 billion in 2025, with stablecoins accounting for a large share of fraudulent transaction volume. Investigators have also been examining crypto activity tied to Iran, with firms such as Chainalysis and TRM Labs estimating that Iran-related flows reached billions of dollars in 2025.
