US Seizes Nearly $500 Million in Iranian Crypto Assets

As Middle East tensions escalate and a US-Iran ceasefire agreement collapses, US and Iranian forces have entered a new round of military conflict in the region. The development underscores how cryptocurrency has become an important channel for sanctioned countries to circumvent traditional financial controls and move funds. Washington's action is intended to cut off Iran's use of digital assets for illicit financial activity and prevent funds from being diverted to military purposes, with significant implications for global geopolitics and crypto compliance.

The US Treasury formally sanctioned four cryptocurrency wallets linked to Iran's central bank in July 2026. Stablecoin issuer Tether immediately complied, freezing more than $131 million in USDT held in the Tron wallets, equivalent to about NT$4.2 billion. The move marks a significant step in Washington's recent expansion of sanctions targeting Iran's oil industry and financial networks, and demonstrates the Treasury's resolve to work with blockchain companies to combat illicit finance.

The United States has long used financial sanctions to restrict Iran’s access to dollars and cross-border payment services, prompting local businesses to turn to cryptocurrency. TRM Labs tracked about 60 wallets linked to sanctioned Iranian entities. Their transactions involved CoinEx and Nobitex, highlighting sanctions-compliance and anti-money-laundering risks at centralized exchanges.

A TRM Labs report said the wallets had moved more than $3.84 billion in cryptocurrency through CoinEx since 2019. About $2.7 billion, or roughly 70% of the total, went to Nobitex, Iran’s largest domestic exchange. CoinEx subsequently denied serving as a funding gateway for sanctioned Iranian crypto companies, leaving the two sides at odds over the exchange’s responsibility.

Iran has long faced restrictions on U.S. dollar settlement and sanctions targeting its access to international banks. In recent years, it has turned to stablecoins such as USDT, over-the-counter dealers and P2P channels to move oil revenue and cross-border funds. The U.S. Treasury’s inclusion of cryptocurrency channels in its “maximum pressure” framework marks an expansion of sanctions beyond banks, oil tankers and specific wallets to stablecoin on- and off-ramp networks and their financial intermediaries.

On April 29, 2026, U.S. Treasury Secretary Scott Bessent announced six areas of action against Iran, including “cryptocurrency access channels” for the first time, and said tens of billions of dollars in revenue had been blocked. Separately, OFAC added 17 individuals and 18 entities to its sanctions list on April 28. United Nations data showed shipping traffic through the Strait of Hormuz fell 95.3% after February 28, while European crude oil prices rose 53% over the same period.