Tether said it assisted U.S. authorities in freezing nearly $550 million in USDT tied to Iran during 2026. According to the stablecoin issuer, the frozen funds were connected to Iran's Central Bank and associated sanctions networks, and the actions were carried out based on information provided by U.S. law enforcement and sanctions authorities.

USDT is a dollar-pegged stablecoin issued on multiple public blockchains, and Tether, as its issuer, can blacklist addresses holding the token. A freeze of this kind leaves the balance visible on-chain but prevents it from being moved, a mechanic that has made stablecoin issuers themselves central to sanctions enforcement involving digital assets.

Two Major Freezes Account for More Than $474 Million

The largest single action took place in April 2026, when Tether froze more than $344 million in USDT across two addresses. The Office of Foreign Assets Control (OFAC) subsequently added those addresses to its list of digital currency identifiers, identifying them as linked to Iran's Central Bank. The sanctions designation also cited ties to the IRGC-Qods Force and Hizballah.

A second action followed in July, when more than $130 million in USDT was frozen across four wallets. The U.S. Treasury added four more TRON addresses to its Central Bank of Iran list in connection with that measure. USDT circulates on several blockchains, and TRON is among the networks where the token is widely used.

Together, the two actions accounted for more than $474 million in frozen USDT. Tether said additional smaller enforcement actions brought the 2026 total to nearly $550 million.

Tether Has Supported Nearly $550 Million in Iran-Linked USD₮ Freezes as U.S. Expands Sanctions Campaign Read more: — Tether (@tether) September 28, 2026

Source post on X | Official Tether announcement

Disclosure Follows Broader U.S. Pressure on Iran-Linked Finance

Tether's disclosure comes amid growing pressure in the United States on Iran-backed financial networks. Treasury Secretary Scott Bessent recently unveiled Operation Economic Outcast, a new initiative targeting financial networks that support Iran. Digital assets have drawn increasing attention within the Treasury campaign, resulting in heightened enforcement focus on cryptocurrency transactions involving sanctioned entities.

Tether CEO Ardoino stated that public blockchains give authorities visibility into transactions. He said Tether has the ability to take action when law enforcement presents credible information. Taken together, the measures show how sanctions enforcement now pairs public designations of blockchain addresses with issuer-level freezes that can immobilize the tokens those addresses hold.

Tether Reports $4.9 Billion in Frozen Assets Globally

Beyond the Iran-related measures, Tether described a broader record of cooperation with authorities. The company has worked for several years with Israel's National Bureau for Counter Terror Financing (NBCTF). In 2023, Tether disclosed that it had frozen 32 addresses holding $873,118.34, which it said were linked to illegal activities against Israel and Ukraine. Since then, the company said it has frozen more than $22 million in assets across more than 40 cases referred by the NBCTF, involving over 640 cryptocurrency addresses.

Tether stated it collaborates with more than 340 law enforcement agencies in 67 countries and is working on more than 2,800 investigations worldwide, including more than 1,500 with U.S. agencies. According to the company, these efforts have led to more than $4.9 billion in frozen assets, over $2.4 billion of which is linked to U.S. authorities.

The company works with several U.S. agencies, including the Department of Justice (DOJ), the FBI, the Secret Service, and Homeland Security Investigations (HSI). It also collaborates with OFAC on sanctions-related enforcement matters. Tether has assisted law enforcement in several high-profile cryptocurrency investigations, including fraud and sanctions cases involving investment fraud, money laundering, and terrorist financing.

The disclosure follows reported investigations into the use of USDT by Iran-linked wallets. A Senate investigation reportedly examined 846 sanctioned wallets tied to Iran and regional proxies, and it is reported that 84% of those wallets were mainly or exclusively using USDT. Tether's latest figures indicate the company is increasingly working with authorities investigating sanctioned cryptocurrency networks. As Operation Economic Outcast develops, further additions to OFAC's digital currency identifier lists and additional issuer freezes would signal how far the Treasury campaign extends into digital assets.

Source: Live Bitcoin News