US Treasury Freezes ₱20.88 billion ($344 million) in Iranian USDT on Tron

Tether froze ₱20.88 billion ($344 million) in USDT at the request of US law enforcement on April 23, targeting two wallets on the Tron blockchain tied to Iran's Islamic Revolutionary Guard Corps and Hizballah.

Treasury Secretary Scott Bessent announced the Office of Foreign Assets Control sanctions on Friday, saying authorities aim to systematically degrade Tehran's ability to generate, move, and repatriate funds. The two sanctioned addresses held roughly ₱12.93 billion ($213 million) and $131 million respectively before Tether blacklisted them one day prior.

Bessent said the Treasury will follow the money that Tehran is desperately attempting to move outside of the country and target all financial lifelines tied to the regime. US officials linked the wallets to Iranian exchanges and intermediary addresses connected to Iran's Central Bank through blockchain analysis. The freeze comes weeks after US and Israeli forces launched joint airstrikes on Iran in late February.

Tether's stablecoin is widely used in cross-border remittance corridors. The sanctions action demonstrates how centralized stablecoin issuers can enforce government policy despite blockchain's decentralized promises.

The sanctions action follows reports that Iran planned to charge ships in Bitcoin for passage through the Strait of Hormuz after attacking three vessels. Forbes reported Iran had already banked revenue from crypto tolls before US naval forces established a blockade. President Donald Trump stated this week that the US was operating under a ceasefire agreement with Iran.

Tether has frozen over $4.4 billion in assets since 2023 and works with 340 law enforcement agencies across 65 countries.