The US government has frozen $131 million in cryptocurrency wallets tied to Iran, targeting digital assets linked to the country’s Central Bank. This action comes amid a surge in hostilities between the US and Iran, marking a continued effort to disrupt Iran’s illicit financial activities using digital currencies.
Blockchain analysis revealed that stablecoin issuer Tether blocked four Tron wallets containing $131 million worth of USDT in line with the US Treasury’s directive. Treasury Secretary Scott Bessent confirmed the move on social media, emphasizing the administration’s commitment to cutting off Iran from funds obtained through illicit schemes and abuse of the crypto system.
This most recent freeze follows a similar crackdown in April when Tether halted over $344 million in USDT from Iran-linked sources. Since the launch of Operation Economic Fury in March 2025, the US Treasury has seized about $1 billion in Iranian cryptocurrency assets to impede the Iranian military’s procurement networks and weaken its economic base.
The freeze coincides with worsening tensions in the Middle East. The US has reestablished a blockade on Iranian ports and increased military strikes in the region. Iran responded by claiming drone attacks on US military bases in Jordan, escalating an already fragile conflict.
Bessent highlighted that the Treasury continues to aggressively trace and block financial channels that support Iran’s military ambitions. The campaign aims to freeze assets, dismantle Iran’s war capabilities, and deny the regime any support through digital or traditional financial means.