Iran Uses Bitcoin and USDT to Evade US Sanctions
The Iranian government has been using cryptocurrencies like Bitcoin and USDT to evade US sanctions. According to The Financial Times, Tehran authorities have increasingly turned to digital assets as tools to bypass restrictions.
Iran's crypto ecosystem exceeded $7.8 billion last year, with addresses linked to the Islamic Revolutionary Guard Corps (IRGC) accounting for about half of on-chain activity in the fourth quarter. This year, the US has taken multiple actions against Iranian exchanges and intermediaries, freezing or seizing over $1 billion in related crypto assets.
The US Treasury's Office of Foreign Assets Control (OFAC) has classified digital assets as a 'sanctionable sector' in Iran's economy. The Iranian central bank was tracked to have purchased $507 million in USDT to intervene in the exchange rate and support the rial, which has depreciated nearly 90% due to sanctions and inflation.
The use of cryptocurrencies by the Iranian government raises questions about the effectiveness of current sanctions and the role of digital assets in evading restrictions. The 'cat-and-mouse game' between Iran and the US continues, with each side imposing precise sanctions and asset freezes on the other's associated funding channels.