- Treasury Secretary Scott Bessent revealed that the US government has frozen $344 million in crypto linked to Iran, coinciding with Tether’s USDT freeze a few days ago.
Tether, the world’s largest stablecoin issuer, broke the news on Wednesday that it has frozen $344 million in USDT stablecoins. The company disclosed that it came from two wallets linked to “unlawful conduct.”
The stablecoin giant stated that the move was in coordination with US authorities, particularly the Office of Foreign Assets Control (OFAC). However, it was mum on the origins of the funds and wallets in question.
The White House’s latest flex, though, now gives us more details about the nature of the frozen funds.
US Treasury Confirms Origin of the Frozen $344M USDT
On Friday, US Treasury Secretary Scott Bessent revealed that the American government sanctioned “multiple wallets tied to Iran.” Interestingly, it coincidentally involved a total of $344 million in cryptocurrency. It was the same amount that Tether mentioned in a disclosure around two days ago.
Note also that Bessent used “cryptocurrency” rather than its plural form in describing the frozen digital assets. Despite the official deliberately not naming the crypto involved, it perfectly coincided with Tether’s announcement.
Tether’s initial notice on the matter notably generated mixed feedback from the crypto community. As the dust settled, it gave critics more reason to question USDT’s highly centralized nature.
For many, Tether’s massive asset freeze and blacklisting of the linked wallet addresses have effectively confirmed that USDT and other centralized stablecoins are at high risk of the same surveillance and control as the traditional banking system. In fact, they are now beginning to validate public concerns about the censorship-prone nature of retail Central Bank Digital Currencies (CBDCs) and their potential for political weaponization.
On the other hand, several people saw Tether’s cooperation with US authorities as a strong sign of its commitment to compliance. It only indicates its maturity in the industry and long-term sustainability.
The USA’s ‘Economic Fury’ Operation
Bessent highlighted in a series of social media posts that the American government has launched “Economic Fury,” a complement to its “Operation Epic Fury” against Iran. As the name expressly says, the former aims to impose a “financial stranglehold on the Iranian regime.”
The Treasury Secretary explained that “Economic Fury” is the key to weakening Iran’s aggression in the Middle East and curtailing its nuclear ambitions. Its primary goal is to “systematically degrade Tehran’s ability to generate, move, and repatriate funds.”
Furthermore, Bessent stressed that the US government will continue to monitor Iran’s international cash flows and halt “all financial lifelines” connected to its government.
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