US Sanctions Four Iran Central Bank Crypto Wallets, Tether Freezes $131 Million

The US Treasury has added four crypto wallets tied to the Central Bank of Iran to its sanctions list, prompting Tether to freeze $131 million in USDT held across those addresses.

Details of the Sanctions Action

The move came after a ceasefire between the US and Iran broke down, with air and drone strikes resuming between the two countries. According to Chainalysis, the four TRON based wallets had collectively received more than $165 million in stablecoins before the freeze took effect, though some funds had already moved out of the addresses beforehand.

Why This Matters for Compliance

By publicly naming these wallet addresses, the Treasury’s Office of Foreign Assets Control gives exchanges, custodians, and compliance teams specific addresses to monitor and screen. OFAC has noted that its published lists are not exhaustive, meaning additional wallets tied to Iran’s central bank could still be considered blocked property even without being named directly.

Part of a Broader Pattern

Iran’s central bank has built up at least $507 million in USDT holdings, according to research from Elliptic, using the stablecoin to help support the value of the Iranian rial. This week’s action expands on an existing designation rather than introducing a new one, as the Central Bank of Iran has been under US counterterrorism sanctions since 2019 for its alleged support of the Islamic Revolutionary Guard Corps-Qods Force and Hezbollah.

Growing List of Enforcement Actions

This latest freeze follows OFAC’s sanctions in June against Nobitex and other Iranian crypto exchanges accused of helping the central bank move funds in and out of stablecoins. Tether had already frozen $344 million in USDT connected to the bank back in April, bringing total funds blocked across both actions to roughly $475 million.

Chainalysis noted the four sanctioned addresses received funds from an institutional liquidity provider and an Asia-based payment processor. While the frozen tokens remain visible onchain, the wallets can no longer transfer or redeem them. Importantly, this freeze does not amount to a seizure, as the funds technically remain under the control of Iran’s central bank.