Tether freezes $344M in USDT linked to Iran’s Central Bank — here’s why

U.S. authorities approved sanctions against two Tron wallet addresses holding $344 million. On-chain analysis indicates the funds were linked to Iran’s Central Bank. GetBlock AML Research examined the blockchain-based financial structure behind these holdings.

Key Takeaways

• The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has, for the first time, sanctioned two crypto wallets reportedly tied to Iran’s Central Bank, as well as the IRGC-Qods Force and Hezbollah.
• In coordination with OFAC and U.S. law enforcement, Tether froze approximately $344.2 million in USDT held in these wallets.
• Since March 2021, the wallets received about $370 million across roughly 1,000 transactions. One wallet showed almost no outgoing activity, while the other moved less than $16 million despite receiving over $228 million.
• Most inflows stopped by late 2023. After that, the wallets remained largely inactive until the freeze—behavior more consistent with reserve storage than active fund usage.

OFAC Targets Iran’s Central Bank

OFAC formally identified the two wallets as assets of Iran’s Central Bank, citing links to military entities and affiliated organizations.

Following the designation, Tether froze about $344.2 million in USDT. This marks the largest known freeze of Iranian state-linked crypto reserves on public blockchains.

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What On-Chain Data Reveals

Over more than five years, the two wallets received around $370 million through nearly 1,000 transactions, starting in March 2021. Their behavior suggests they were not used for day-to-day transactions but rather as reserve storage.

Only about $25 million—less than 7% of total inflows—was ever withdrawn. One wallet sent roughly $9.7 million out of $141 million received, while the other moved about $15.7 million out of $229 million.

Most transfers occurred within the system. For example, in January 2022, around $8.6 million was simply moved between the two wallets.

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The largest external transfers, totaling about $11 million, were sent to another affiliated address—not to exchanges. Notably, neither wallet sent funds directly to known crypto exchanges.

By the end of 2023, activity had nearly stopped. From that point on, the funds remained idle until the freeze. In effect, these wallets functioned as endpoint storage: funds flowed in, were occasionally redistributed internally, but rarely moved outward.

Links and Ecosystem Role

Both wallets interacted directly with accounts on the HTX exchange, which sits on the edge of a network OFAC associates with Iran’s Central Bank operations.

Iran’s Broader Crypto Ecosystem

This freeze aligns with a broader pattern of Iran using cryptocurrency to bypass sanctions.

Previously, OFAC sanctioned exchanges like Zedcex and Zedxion—early cases where digital asset infrastructure tied to Iranian military entities was targeted. These platforms processed significant volumes and interacted with wallets linked to state actors and sanctioned groups.

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Analysis suggests a typical flow: large sums enter the system, are distributed across blockchains and tools, then broken down and gradually moved through various channels.

The exchange Nobitex is also highlighted as a key hub connecting Iran’s domestic crypto market with state-linked entities.

Iran’s total crypto transaction volume is estimated at around $11.4 billion in 2024 and roughly $10 billion in 2025, indicating that digital assets are deeply embedded in the country’s financial system.