Tether Freezes USD 550M in Iran-Linked USDT for US Authorities

Tether announced on Monday that it helped US authorities freeze nearly USD 550 million in Iran-linked USDT this year as Washington expands sanctions involving cryptocurrency networks. The stablecoin issuer detailed two major freezes involving TRON addresses linked to US sanctions. Together, those actions accounted for more than USD 474 million of the total.

In April, Tether locked more than USD 344 million in USDT across two TRON addresses. The company acted after receiving information from US authorities.

The Treasury’s Office of Foreign Assets Control added both addresses to its Central Bank of Iran sanctions entry on April 24. This entry links the bank to the IRGC Qods Force and Hezbollah.

Tether Freezes More USDT After OFAC Expands Iran Sanctions

OFAC later added four more TRON addresses to the same sanctions entry on July 14. Tether then froze more than USD 130 million in USDT across those wallets. The April and July actions together totaled more than USD 474 million. The fintech company said its Iran-related freezes this year reached nearly USD 550 million, although it did not itemize the remaining amount.

Tether CEO Paolo Ardoino said public blockchains give authorities greater visibility into fund movements than cash. He added that Tether can respond when law enforcement provides credible information.

The freezes came as the US Treasury increased pressure on Iran-linked financial networks. In June, Treasury sanctioned Nobitex, Iran’s largest cryptocurrency exchange. Treasury said Nobitex helped Iran’s central bank obtain stablecoins that supported the falling rial. The action placed another crypto platform within Washington’s wider sanctions campaign.

Treasury Secretary Scott Bessent then launched Operation Economic Outcast on August 24. The initiative targets financial networks connected to the Iranian government. Its sectoral sanctions determinations cover digital assets, technology, gold, aviation, and shipping. Treasury said Iran increasingly uses cryptocurrency to avoid sanctions, including transactions connected to the IRGC.

US Sanctions Target More Iran-Linked Crypto Networks

On September 17, OFAC sanctioned Iranian crypto exchange BitBank. Treasury said sanctioned financier Babak Zanjani controls the platform. Treasury alleged that BitBank moved hundreds of millions of dollars in Bitcoin to the IRGC during June and July.

The case raises a central question: how much financial activity can authorities interrupt when sanctioned networks rely on traceable stablecoins and public blockchains? Tether also said it has worked with Israel’s National Bureau for Counter Terror Financing for several years. Through more than 40 referred cases, Tether froze over 22 million USDT.

In September 2025, the bureau published 187 crypto addresses it linked to the IRGC. Blockchain analytics firm Elliptic said those wallets received USD 1.5 billion in USDT.

Tether later blacklisted 39 of those addresses and froze nearly USD 1.5 million remaining in them. Elliptic also noted that some addresses could belong to crypto services handling customer funds.

Across all enforcement-related cases, Tether said it has helped freeze more than USD 4.9 billion. More than USD 2.4 billion of that amount involved US authorities.

Also Read: US Sanctions Shelbit and Aban Tether Over Iran Crypto Routes

EQIBank Exposure Raises Separate Asset Questions

Tether has also disclosed exposure to EQIBank, which is challenging a US seizure involving payment processor Capstone Limited. On September 25, Tether told PYMNTS that its exposure represented less than 0.034% of the Tether group’s assets. It did not provide a dollar figure.

The company also did not say whether that exposure forms part of the reserves backing USDT. The US government filed a civil forfeiture complaint in July. Court records list about USD 83.03 million across three bank balances and approximately 1.18 million USDT at two addresses.

At a USD 1 value for each USDT, the listed property totals about USD 84.2 million. A later court order identified the bank accounts as belonging to Capstone. The court record does not identify the listed property as Tether’s assets. Therefore, the government’s forfeiture claim remains separate from Tether’s disclosed EQIBank exposure.

EQIBank sought the return of seized property through a related action, but a court denied that motion. The ruling did not resolve the final forfeiture case or establish ownership.

Tether’s percentage figure also uses group assets as its denominator. By contrast, its published USDT reserve figures refer to Tether International and cover a different reporting date. The fintech, however, has not provided a figure connecting these two measures.