Treasury Freezes $344M in Iran Crypto

Treasury Secretary Scott Bessent announced on April 24 that the US government has sanctioned multiple crypto wallets linked to Iran’s Islamic Revolutionary Guard Corps under a campaign called Operation Economic Fury, with Tether executing the freeze of $344 million in USDT across two addresses on the Tron blockchain at the direction of American authorities.

The US Treasury’s Office of Foreign Assets Control sanctioned multiple crypto wallet addresses linked to Iran’s Islamic Revolutionary Guard Corps on April 24, with Tether executing the freeze of $344 million in USDT across two Tron blockchain addresses in coordination with American law enforcement. “We will follow the money that Tehran is desperately attempting to move outside of the country and target all financial lifelines tied to the regime,” Bessent said in a statement announcing the action.

Operation Economic Fury Iran Crypto Freeze Targets IRGC Financial Architecture

The two frozen Tron wallets held approximately $213 million and $131 million in USDT respectively. Both were blacklisted at the USDT smart contract level rather than at the blockchain layer, meaning Tron itself continued operating normally while Tether’s issuer-level controls rendered the funds immovable. Chainalysis told CNN the wallets’ transaction patterns are “consistent with how we’ve observed other known IRGC wallets move funds on chain,” describing frequent large transfers of up to tens of millions of dollars predominantly between private wallets. A US official said investigators had identified material links to the Iranian regime, including transactions with Iranian exchanges and intermediary addresses that interacted with wallets associated with the Central Bank of Iran. As crypto.news reported, Chainalysis estimates Iran’s crypto ecosystem reached approximately $7.8 billion in 2025, with IRGC-linked activity accounting for roughly half of all on-chain holdings by the fourth quarter of that year.

Tether as a Sanctions Enforcement Tool

Thursday’s action was not the first time Tether’s freeze capability has been deployed as a Treasury enforcement mechanism, but at $344 million it is the largest single crypto freeze directly linked to Iran since the current conflict began. As crypto.news documented, Tether has increasingly aligned its wallet freezing policy with OFAC’s Specially Designated Nationals list, blocking addresses connected to sanctioned individuals, terrorism financing, and high-risk jurisdictions across a growing number of enforcement actions. The freeze also follows January’s OFAC designations of two UK-registered crypto exchanges, Zedcex and Zedxion, for processing IRGC transactions, which crypto.news tracked as Britain subsequently moved to dissolve Zedxion after TRM Labs found IRGC-linked flows had reached 87% of the platform’s total transaction volume by 2024. The dual approach, sanctioning infrastructure and freezing assets simultaneously, reflects Treasury’s attempt to dismantle the layered architecture Iran has built to move money through digital rails while avoiding traditional banking.

What the Freeze Means for Iran’s Crypto Strategy

Daniel Tannebaum, a senior fellow at the Atlantic Council, told CNN the freeze is meaningful but said that given how sanctioned Iran already is, it does not necessarily move the needle on Tehran’s ability to operate during the conflict. As crypto.news noted, Iran has embedded cryptocurrency into its financial architecture at the state level, legalizing Bitcoin mining in 2019, accepting stablecoin payments for military export contracts since January 2026, and running a formal Strait of Hormuz toll system that operates in practice through stablecoins and yuan to bypass OFAC enforcement. The $344 million freeze removes a significant portion of visible on-chain holdings, but Tannebaum warned that the more effective approach to limiting Iran’s financial reach at this stage is targeting third-country actors enabling Tehran rather than the wallets themselves.

Tether said it executed the freeze in full coordination with OFAC and law enforcement, and reiterated its policy of blocking payments used to evade sanctions.