The U.S. Treasury Department has intensified its financial crackdown on Iran by sanctioning cryptocurrency wallets allegedly linked to the country’s central bank and the Islamic Revolutionary Guard Corps (IRGC), resulting in the freezing of more than $131 million in USDT across four Tron blockchain addresses.
The action, announced by the Office of Foreign Assets Control (OFAC), marks another major step in Washington’s ongoing effort to disrupt Iran’s use of digital assets to bypass international sanctions.
Tether freezes $131 Million in USDT
Following OFAC’s sanctions, stablecoin issuer Tether froze four Tron-based wallets holding over $131 million worth of USDT, preventing the funds from being transferred or redeemed.
Unlike decentralized cryptocurrencies, USDT is issued by Tether, giving the company the ability to freeze specific wallet addresses when required by law enforcement or sanctions authorities.
According to U.S. Treasury Secretary Scott Bessent, the United States will continue targeting financial networks that help Iran access the global financial system.
The latest enforcement action also included sanctions against seven individuals and entities allegedly involved in an international procurement network supplying Iran’s armed forces and the IRGC. Those sanctioned include a drone component supplier based in Tehran, intermediaries operating in Nigeria, and Russian nationals connected to a Moscow aviation company.
Blockchain investigation traced the funds
Blockchain investigators were able to identify the sanctioned wallets before the official announcement.
On-chain analyst Specter reported that the frozen addresses were connected to Iran’s central bank and IRGC-linked entities. The investigation found that much of the USDT had previously moved through payment provider DTC Pay and Latin American cryptocurrency exchange Bitso before arriving at the sanctioned wallets.
The case highlights how public blockchains allow investigators to trace transactions across wallets, even when funds move through multiple intermediaries.
Transparency becomes a double-edged sword
While cryptocurrencies have often been viewed as tools for bypassing traditional banking restrictions, public blockchains such as Tron record every transaction permanently.
This transparency enables blockchain analytics firms and law enforcement agencies to monitor fund movements, identify suspicious transactions, and trace assets back to sanctioned entities.
Security researchers note that centralized digital assets such as USDT also include issuer-controlled mechanisms that allow tokens to be frozen, making them vulnerable to regulatory enforcement despite operating on public blockchains.
Industry experts have previously pointed out that blockchain analytics has become an increasingly important tool for governments investigating sanctions violations, money laundering, and illicit financial activity.
Iran’s expanding crypto economy
Iran has steadily expanded its cryptocurrency ecosystem over the past several years in an effort to reduce dependence on the traditional financial system.
The country legalized Bitcoin mining in 2019 and has increasingly relied on stablecoins such as USDT for cross-border settlements and preserving value amid the continued depreciation of the Iranian rial.
According to blockchain analytics firms, Iran generated billions of dollars in cryptocurrency activity during 2026, with addresses associated with the IRGC accounting for a significant share of the country’s tracked crypto inflows.
Part of a broader sanctions strategy
The latest wallet freeze forms part of the U.S. government’s broader sanctions campaign known as Operation Economic Fury, which focuses on disrupting Iran’s digital financial infrastructure.
The campaign has already produced several major enforcement actions this year:
- In April, Tether froze approximately $344 million in USDT across two Tron wallets linked to Iran’s central bank.
- By May, U.S. officials said authorities had seized roughly $1 billion in Iranian crypto-related assets since the operation began.
- In June, OFAC sanctioned Iran’s four largest cryptocurrency exchanges, including Nobitex, the country’s largest digital asset trading platform.
Tether expands global law enforcement cooperation
Tether says it now cooperates with more than 340 law enforcement agencies across 65 countries to combat illicit cryptocurrency activity.
The company reports that it has frozen more than $4.4 billion in digital assets since launching its compliance program, with over $2.1 billion linked directly to U.S. enforcement actions.
The latest sanctions underscore the growing role of blockchain analytics, issuer-level controls, and international cooperation in enforcing financial sanctions as governments increasingly target the use of digital assets in geopolitical conflicts.
