Key Takeaways:
Tether froze $131 million in USDT after the US Treasury's OFAC added four TRON wallets linked to the Central Bank of Iran to its sanctions list.
The freeze brings total blocked USDT tied to Iran's central bank to roughly $475 million, following a $344 million freeze in April.
Iran's central bank has accumulated at least $507 million in USDT to support the falling rial, according to Elliptic.
Tether has frozen $131 million in USDT held by four wallets linked to the Central Bank of Iran, after the US Treasury's Office of Foreign Assets Control added the addresses to its sanctions list this week, CoinDesk reported Thursday. The four TRON wallets had received more than $165 million in stablecoins, according to Chainalysis, and some of the funds moved out before the freeze landed.
The action brings total blocked USDT tied to Iran's central bank to roughly $475 million. Tether froze $344 million across two other addresses in April in coordination with OFAC and US law enforcement. Because Tether issues the token, it can block specific addresses at the software level. The frozen tokens stay visible on-chain but cannot be transferred or redeemed, so this is a freeze, not a seizure.
Iran's central bank has leaned on stablecoins as the rial fell, accumulating at least $507 million in USDT to support the currency, according to blockchain analytics firm Elliptic. Chainalysis said the sanctioned addresses received funds from an institutional liquidity provider and an Asia-based payment processor. The bank has been blocked under US counterterrorism authorities since 2019, so Tuesday's OFAC update expands an existing designation rather than imposing new sanctions, and it follows June sanctions on Nobitex and other Iranian exchanges.
The freeze lands as the ceasefire between the two countries has broken down and strikes have resumed around the Strait of Hormuz. The most notable part of this is the mechanism. A private stablecoin issuer is now executing US sanctions policy at the wallet level, using the same on-chain traceability that let Treasury map an ISIS financing network in June, while the underlying conflict drives the energy shock the IMF says lands hardest on food prices.
People Also Ask
How can Tether freeze USDT in a wallet?
Tether issues the token, so it can block specific wallet addresses at the software level. Frozen tokens remain visible on-chain but cannot be transferred or redeemed.
How much Iranian central bank USDT is frozen in total?
Roughly $475 million. Tether froze $344 million across two addresses in April and $131 million across four more addresses this week.
Why does Iran's central bank hold stablecoins?
Iran turned to USDT to stabilize the falling rial and settle international trade under sanctions, accumulating at least $507 million in USDT according to Elliptic.
Is a Tether freeze the same as a US seizure?
No. The funds remain in wallets controlled by Iran's central bank, but they cannot move. OFAC also says its published wallet lists are not exhaustive.
Sources: CoinDesk, Chainalysis, US Treasury OFAC, Tether