US freezes $131M in Iran-linked crypto wallets as Middle East tensions escalate

The US government ordered the freezing of more than $130 million in cryptocurrency held in wallets linked to Iran, according to Treasury Secretary Scott Bessent. For PSPs, exchanges, and custodians, the point is simple: sanctions exposure is still moving through onchain rails, and stablecoins remain a fast target for enforcement.

1. On Tuesday, blockchain investigator Specter flagged onchain data showing that Tether froze four Tron wallets holding $131 million worth of USDt (USDT). Bessent then confirmed on X that the wallets were tied to the Central Bank of Iran.
2. Bessent said, “US Treasury is committed to disrupting and degrading Iran’s illicit financial activities, including its abuse of digital assets,” adding that the US would “continue to aggressively follow the money and deny the Iranian regime access to the proceeds of its illicit revenue schemes.”
3. The freeze came as the ceasefire between the US and Iran collapsed. The US said it has renewed its blockade of Iranian ports, the US military’s Central Command announced a new wave of strikes on Iran, and Iran’s military said it carried out drone strikes against US military facilities at Jordan’s Al Azraq Air Base.
4. This was not the first such action. In April, Tether confirmed it had frozen more than $344 million in USDT at the request of US authorities. In May, Bessent said the US had seized around $1 billion in Iranian crypto assets as part of Operation Economic Fury, the US financial pressure campaign against Iran that launched in March 2025.
5. In June, Bessent said Treasury was using Operation Economic Fury to disrupt foreign procurement networks supporting the Iranian military’s efforts to acquire weapons, while also freezing Iranian regime assets and dismantling what he called the Iranian war machine.