Tether Freezes $550 Million in Iran-Linked USDT Amid Growing Sanctions Pressure

Tether, a leading stablecoin issuer, has frozen approximately $550 million in USDT (USD₮) tied to Iran's Central Bank and sanctions-related networks. This move comes as part of Washington's campaign against Iranian financial networks, with the Treasury Department expanding its Operation Economic Outcast on August 24.

The freeze is based on information provided by the Office of Foreign Assets Control (OFAC) and U.S. law enforcement officials, who identified the wallet addresses in question. Tether has implemented an issuer-level freeze on USD₮ held in those wallets, restricting access to the frozen funds.

Tether's CEO, Paolo Ardoino, emphasized that the company's approach is based on the transparency of public blockchains, which provides authorities with a level of visibility into the movement of funds. He noted that Tether can act when credible information is provided by law enforcement, aligning its wallet-freezing policy with the OFAC Specially Designated Nationals List.