Stablecoin issuer Tether revealed on Monday that it assisted US officials in freezing nearly $550 million in Iran-associated USDT throughout the year, coinciding with Washington’s broader push to sanction crypto networks. The company highlighted two primary enforcement actions involving TRON addresses tied to US sanctions, which collectively accounted for more than $474 million.
In April, Tether locked upward of $344 million in USDT distributed across two TRON addresses after receiving intelligence from US law enforcement agencies.
On April 24, the Treasury’s Office of Foreign Assets Control (OFAC) incorporated both wallets into its Central Bank of Iran sanctions listing, which ties the financial institution to Hezbollah and the IRGC Qods Force.
Tether Freezes More USDT After OFAC Expands Iran Sanctions
Subsequently, OFAC added four additional TRON addresses to that sanctions entry on July 14, prompting Tether to freeze over $130 million in USDT within those wallets. Combined with the April enforcement, these measures totaled in excess of $474 million. Although the fintech provider noted that its total Iran-focused freezes for the year reached nearly $550 million, it did not itemize the remainder.
Paolo Ardoino, CEO of Tether, stated that public blockchains offer authorities superior transparency into transaction flows compared to physical cash, adding that the firm is equipped to take action when law enforcement supplies reliable data.
These freezes coincided with heightened US Treasury scrutiny directed at Iran-linked financial channels. In June, the Treasury placed sanctions on Nobitex, the top cryptocurrency exchange in Iran, stating the platform aided the central bank in acquiring stablecoins to counteract the declining rial. This move brought another digital asset venue under Washington’s expanded sanctions umbrella.
On August 24, Treasury Secretary Scott Bessent initiated Operation Economic Outcast, a campaign aimed at financial networks linked to the Iranian government. The initiative’s sectoral sanctions span digital assets, technology, gold, shipping, and aviation. According to the Treasury, Iran increasingly relies on cryptocurrencies—including transactions tied to the IRGC—to bypass sanctions.
US Sanctions Target More Iran-Linked Crypto Networks
OFAC designated Iranian crypto exchange BitBank on September 17. The Treasury asserted that the platform is controlled by sanctioned financier Babak Zanjani and alleged that BitBank transferred hundreds of millions of dollars worth of Bitcoin to the IRGC over June and July.
This situation underscores a core question: to what extent can authorities disrupt financial activity when targeted networks utilize transparent stablecoins and public blockchains? Additionally, Tether noted that it has collaborated with Israel’s National Bureau for Counter Terror Financing for multiple years, freezing upwards of 22 million USDT across more than 40 referred cases.
In September 2025, the bureau released 187 cryptocurrency addresses associated with the IRGC. According to blockchain analytics firm Elliptic, those specific wallets had taken in $1.5 billion in USDT.
In response, Tether blacklisted 39 of these addresses, freezing the nearly $1.5 million left in them. Elliptic pointed out that certain addresses might have belonged to crypto services managing user funds.
Across all enforcement-related operations, Tether reported helping freeze over $4.9 billion, with more than $2.4 billion of that total involving US authorities.
Also Read: US Sanctions Shelbit and Aban Tether Over Iran Crypto Routes
EQIBank Exposure Raises Separate Asset Questions
Tether also disclosed financial exposure to EQIBank, an institution fighting a US seizure concerning payment processor Capstone Limited. Tether informed PYMNTS on September 25 that this exposure accounts for less than 0.034% of the overall Tether group’s assets, though it omitted a specific dollar amount.
Furthermore, the corporation did not clarify whether this exposure forms a part of the reserves supporting USDT. The US government initiated a civil forfeiture lawsuit in July, and court records list approximately $83.03 million distributed across three bank balances alongside roughly 1.18 million USDT split between two addresses.
Calculating each USDT at a $1 valuation, the enumerated property comes to about $84.2 million. While a subsequent court directive identified the bank accounts as property of Capstone, the documentation does not designate the listed assets as belonging to Tether, meaning the government’s forfeiture claims remain distinct from Tether’s reported EQIBank exposure.
Although EQIBank attempted to recover the confiscated funds via a related legal motion, a court rejected the request. That decision neither concluded the main forfeiture proceeding nor determined ownership.
Moreover, Tether’s percentage metric relies on group assets as its baseline, whereas its published USDT reserve figures pertain to Tether International and apply to a different reporting timeline. The fintech has not published a metric bridging these two data sets.
