Tether announced on Monday that it helped US authorities freeze nearly $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, which together accounted for more than $474 million of the total.
April Freeze Targets Central Bank of Iran
In April, Tether locked more than $344 million in USDT across two TRON addresses after receiving information from US authorities. The Treasury’s Office of Foreign Assets Control (OFAC) added both addresses to its Central Bank of Iran sanctions entry on April 24, linking the bank to the IRGC Qods Force and Hezbollah.
July Freeze Follows OFAC Expansion
OFAC later added four more TRON addresses to the same sanctions entry on July 14. Tether then froze more than $130 million in USDT across those wallets. The April and July actions together totaled more than $474 million. Tether said its Iran-related freezes this year reached nearly $550 million, though it did not itemize the remaining amount.
Tether CEO Paolo Ardoino noted that public blockchains give authorities greater visibility into fund movements than cash, and that Tether can respond when law enforcement provides credible information.
US Treasury Intensifies Pressure on Iran-Linked Networks
The freezes came as the US Treasury increased pressure on Iran-linked financial networks. In June, Treasury sanctioned Nobitex, Iran’s largest cryptocurrency exchange, for helping Iran’s central bank obtain stablecoins that supported the falling rial. Treasury Secretary Scott Bessent launched Operation Economic Outcast on August 24, targeting financial networks connected to the Iranian government. The initiative covers digital assets, technology, gold, aviation, and shipping, as Treasury said Iran increasingly uses cryptocurrency to avoid sanctions, including transactions connected to the IRGC.
On September 17, OFAC sanctioned Iranian crypto exchange BitBank, which Treasury said is controlled by sanctioned financier Babak Zanjani. Treasury alleged that BitBank moved hundreds of millions of dollars in Bitcoin to the IRGC during June and July.
Broader Enforcement and Collaboration
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 linked to the IRGC, and blockchain analytics firm Elliptic said those wallets received $1.5 billion in USDT. Tether later blacklisted 39 of those addresses and froze nearly $1.5 million remaining in them.
Across all enforcement-related cases, Tether has helped freeze more than $4.9 billion, with over $2.4 billion of that amount involving US authorities.
EQIBank Exposure Raises Separate 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, without providing a dollar figure. The company did not say whether that exposure forms part of the reserves backing USDT. The US government filed a civil forfeiture complaint in July, listing about $83.03 million across three bank balances and approximately 1.18 million USDT at two addresses. A later court order identified the bank accounts as belonging to Capstone, but the court record does not identify the listed property as Tether’s assets. EQIBank sought the return of seized property, but a court denied that motion, leaving the final forfeiture case unresolved.
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