The US Treasury's Office of Foreign Assets Control has sanctioned four Tron blockchain wallets linked to Iran's Islamic Revolutionary Guard Corps, freezing roughly $131 million in Tether (USDT) stablecoins held in those addresses. Tether, the issuer of USDT, confirmed it coordinated the freeze as part of the broader US crypto sanctions campaign. The move marks one of the largest single stablecoin seizures tied to a state-backed military entity.
The wallets and the funds
OFAC added the four Tron addresses to its Specially Designated Nationals list on July 21, 2026. The wallets collectively held about $131 million in USDT, according to blockchain data. The Treasury did not specify how the funds were being used, but the designation links them directly to the IRGC, which the US has long accused of funding terrorism and destabilizing activities across the Middle East.
Tether's role in the freeze
Tether said it worked with law enforcement to freeze the USDT in the sanctioned wallets. The company has a history of cooperating with US regulators on such actions, though the scale here is notable. The freeze effectively locks the funds on the Tron network, preventing the wallet holders from moving or cashing out the stablecoins. Tether did not disclose how long the freeze will remain in place.
Broader sanctions push
The action is part of a wider US government effort to use cryptocurrency sanctions against entities like Iran's IRGC. The Treasury has increasingly targeted crypto wallets tied to sanctioned nations and groups, arguing that digital assets are not a safe haven for illicit finance. This month's designation follows similar actions against wallets linked to North Korean hacking groups and Russian oligarchs.
What comes next is unclear. The sanctioned wallets are now blacklisted, but the IRGC may attempt to move funds through other addresses. Tether and OFAC are likely monitoring for related activity. For now, the $131 million sits frozen — a reminder that even on a pseudonymous blockchain, the US government can still pull the plug.
