Tether Freezes $550M in Iran-Linked USDT

Tether, the issuer of the world's largest stablecoin USDT, has announced its cooperation with U.S. authorities to freeze nearly $550 million in USDT this year. These actions are part of a broader U.S. crackdown on Iran's financial networks, aimed at preventing the evasion of sanctions.

The stablecoin provider detailed two significant freezes in April and July, involving over $474 million in USDT across multiple TRON addresses. These addresses were linked to Iran's central bank, which the U.S. Treasury Office of Foreign Assets Control (OFAC) has connected to the Islamic Revolutionary Guard Corps (IRGC) Qods Force and Hezbollah. Tether acted on information provided by OFAC and U.S. law enforcement, adding these addresses to existing sanctions entries.

Tether's CEO, Paolo Ardoino, highlighted the transparency of public blockchains as a key tool for authorities. The U.S. Treasury has intensified its focus on digital assets as a sanctions evasion method, sanctioning Iranian crypto exchanges like Nobitex and BitBank. These efforts, including "Operation Economic Outcast," target sectors like digital assets, gold, and shipping used by the Iranian regime.

In addition to U.S. referrals, Tether also works with Israel's National Bureau for Counter Terror Financing (NBCTF). It has frozen over 22 million USDT in cases referred by the NBCTF, including actions taken against addresses linked to the IRGC. This collaboration underscores the growing role of stablecoin issuers in global efforts to combat illicit finance.