Tether · Iran · U.S. Treasury · Scott Bessent · CryptoSlate
US turns stablecoin issuer Tether into a financial weapon against Iran, freezing nearly $500 million
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US authorities have used Tether's control over its dollar-linked stablecoin to freeze about $475 million connected to Iran in less than three months, extending Washington's sanctions reach beyond the traditional banking system.
Key facts
- On July 14, the US government sanctioned four wallets on the Tron blockchain holding roughly $131 million in USDT
- In 2021, Tether agreed to pay $41 million to settle Commodity Futures Trading Commission allegations that it had made misleading statements about its reserves
- Chainalysis estimated that Iran's cryptocurrency ecosystem received more than $7.78 billion in 2025
- It also joined the affiliated exchange, Bitfinex, in an $18.5 million settlement with the New York attorney general that year
Summary
01 U.S. authorities have frozen about $475 million in USDT linked to Iran, using Tether’s blacklist controls on Tron wallets. 02 The seizures extend sanctions beyond banks, targeting dollar-denominated crypto flows Iran uses to move funds outside the financial system. 03 Tether can block or even cancel tokens without altering the blockchain, raising questions about issuer-controlled access to public networks. On July 14, the US government sanctioned four wallets on the Tron blockchain holding roughly $131 million in USDT.