Tether Freezes $550 Million in Iran-Linked USDT Assets

The company reported that it executed a significant freeze in April, immobilizing more than $344 million across two addresses just before the Treasury Department’s Office of Foreign Assets Control (OFAC) added the wallets to its sanctions list. A subsequent action in July restricted an additional $130 million held in four TRON-based wallets. Tether CEO Paolo Ardoino emphasized that the public nature of blockchains allows for effective tracking, stating that the platform does not serve as a haven for criminal or sanctioned actors.

These interventions reflect a wider U.S. strategy, Operation Economic Outcast, which recently identified digital assets as a primary sector for expanded sanctions. While a freeze prevents the movement of funds, it remains distinct from a government seizure. However, such actions often precede legal efforts to gain custody of assets, as seen in separate September court filings where prosecutors sought the forfeiture of $61.2 million in previously frozen USDT. Tether maintains that its cooperation with over 340 global law enforcement agencies has resulted in the freezing of more than $4.9 billion in illicit assets to date.