The stablecoin issuer says it has worked with U.S. authorities to block digital assets linked to the regime’s Central Bank and sanctioned financial networks.
Tether, the world’s largest stablecoin issuer, says it has supported the freezing of approximately $550 million in digital assets linked to Iran’s regime during 2026, as the United States intensifies efforts to disrupt the regime’s financial networks and sanctions-evasion mechanisms.
In a statement on September 28, Tether said the actions were carried out in coordination with U.S. authorities and involved wallets identified as connected to the regime’s Central Bank and other sanctioned networks. The company said the measures demonstrate that digital assets can be traced and restricted when authorities identify links to sanctioned entities.
More Than $344 Million Frozen in April
In April, Tether supported the U.S. government in freezing more than $344 million in USDT across two digital addresses, based on information provided by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and U.S. law-enforcement agencies.
The following day, OFAC formally added the same two addresses to its sanctions designation as digital-currency identifiers associated with the Central Bank of Iran. The Treasury designation also links the bank to the IRGC-Qods Force and Hezbollah.
The April action was therefore not simply a private compliance measure by Tether. It followed information supplied by U.S. authorities and was subsequently reinforced through formal Treasury sanctions.
Additional $130 Million Blocked in July
In July, Tether said it froze more than $130 million in USDT held across four additional wallets after the U.S. Treasury expanded its designation concerning the Central Bank of Iran to four more addresses on the TRON blockchain.
Combined, the April and July actions account for approximately $550 million in Iran-linked USDT frozen during 2026, according to Tether.
| 2026 action | Digital assets frozen | Associated action |
|---|---|---|
| April | More than $344 million | Two addresses later designated by OFAC as linked to the Central Bank of Iran |
| July | More than $130 million | Four additional TRON addresses added to the Treasury designation |
| Total | Approximately $550 million | Iran-linked assets frozen during 2026 |
Digital Assets Targeted in Expanding U.S. Pressure
The freezes come amid a broader U.S. campaign targeting the financial infrastructure used by the Iran regime and the IRGC.
The U.S. Treasury has identified digital assets as one of the areas subject to expanded sanctions enforcement. Treasury actions in 2026 have also targeted Iranian shadow-banking networks accused of facilitating sanctions evasion, illicit oil transactions, and the movement of funds supporting the regime’s military and terrorist-proxy networks.
The Treasury has separately targeted Iran-based digital-asset infrastructure. In May, it designated Iran’s largest digital-asset exchange, Nobitex, accusing it of facilitating sanctions evasion and transactions connected to the IRGC.
This places cryptocurrency within a broader effort to restrict the regime’s ability to move money internationally through alternative financial channels.
Tether: Blockchain Transactions Are Traceable
Tether CEO Paolo Ardoino said the company had demonstrated that its USDT wallets are not a safe haven for sanctioned actors, terrorist organizations, or criminal networks.
Tether said its cooperation with authorities extends beyond Iran-related cases and involves law-enforcement agencies in numerous countries. The company maintains that public blockchains can provide investigators with visibility into financial transactions that is difficult to obtain through cash-based systems.
For the Iran regime, the significance extends beyond the amount frozen. The measures demonstrate that attempts to use digital assets to bypass conventional banking restrictions can also become subject to international financial surveillance, sanctions designations, and asset freezes.
As Washington expands pressure on the regime’s financial networks, the targeting of digital wallets adds another layer to efforts to restrict the channels through which regime-linked institutions and sanctioned entities can access and transfer funds internationally.