U.S. Treasury targets Iran-linked crypto seizure in sanctions push

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U.S. Treasury targets Iran crypto

Highlights

U.S. Treasury will likely seize $1 billion in cryptocurrency tied to Iran this week as part of its intensified sanctions enforcement campaign.
Earlier actions include a July wallet sanction freezing $130 million in USDT linked to four Tron addresses, and cumulative seizures ranging from nearly $500 million to about $1 billion so far in 2024.
In September, Treasury sanctioned Iranian crypto exchange BitBank for alleged transfers of hundreds of millions of dollars in bitcoin to the Islamic Revolutionary Guard Corps between June and July.

Treasury outlines latest enforcement step

As first reported by The Block, Bessent told Newsmax's NPolicy Summit in Washington on Thursday that the U.S. will "probably" seize $1 billion in cryptocurrency tied to Iran this week and said authorities know where the assets are.

He described the action as part of an "absolute isolation campaign" against Iran that also covers Strait of Hormuz blockades, restrictions on international flights and the closing of land routes with neighboring countries. Bessent said the administration has moved beyond a "maximum pressure campaign" and that the broader effort is working.

Bessent did not identify the targeted wallets or clarify whether the planned seizure would add to amounts previously announced by the Treasury Department. That leaves uncertainty over the cumulative scale of Iran-linked crypto assets that U.S. authorities have already disrupted or taken control of.

Prior seizures and exchange sanctions build pressure

Earlier this year, Bessent said the U.S. had seized about $1 billion in Iranian cryptocurrency, stating that authorities had directly taken control of the wallets. A Treasury release issued shortly after that comment, however, referred to an earlier estimate of nearly $500 million.

In July, Treasury announced wallet sanctions that resulted in $130 million being frozen. Onchain analyst Specter linked that action to four Tron addresses holding roughly $131 million in USDT that Tether blacklisted.

The U.S. has also expanded enforcement against Iranian crypto exchanges. In its latest action in September, Treasury targeted BitBank over allegations that it moved hundreds of millions of dollars in bitcoin to the Islamic Revolutionary Guard Corps between June and July.

In our earlier article on Blockchain.com’s U.S. licensing push, we covered the company’s applications to the CFTC for DCM and FCM registrations to offer event contracts and crypto derivatives domestically. We also outlined how the move fits into a broader race among major crypto platforms to operate in regulated U.S. markets, alongside Blockchain.com’s preparations for a potential IPO.

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