Tether Freezes $700M in USDT Amid Iran Links and U.S. Crypto Crackdown

Tether has frozen 112 wallets holding approximately $700 million in USDT on Ethereum and Tron blockchains. The action comes as regulatory attention on stablecoins intensifies in the United States and tensions between Iran and Israel remain high.

According to on-chain analyst Cryptadamist, the majority of the frozen wallets are hosted on the Tron network. A large proportion of these addresses are reportedly linked to Iranian crypto users, some of whom engage the services of Nobitex, one of the biggest exchanges in Iran.

The platform is said to have been teaching users how to use intermediary wallets to circumvent international sanctions.

Uncovering detailed transaction patterns, Cryptadamist identified Tron’s central role in facilitating USDT transfers linked to Iran. The translation indicates that Tether could have overlooked such trends in the past, focusing on volumes.

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Some shift in the mode of action, however, is implied with this last freeze amid growing geopolitical and regulatory pressure.

Together, the frozen wallets had hundreds of millions of USDT before the freeze. Four of the biggest wallets could not work a few days after Tether, Coinbase, and OKX seized high-profile wallets tied to the scam.

This timing has raised doubts among blockchain analysts about whether the freeze was targeted at the addresses that specifically led to Iranian actions.

Wallet Freezes Reveal Deeper Links Between Tron Network and Iranian Flows

In the days following the wallet lockouts, a sharp drop in Bitcoin mining activity was recorded. Iran, known for its state-backed mining programs, may have been affected by disruptions in USDT liquidity. These freezes could impact the broader crypto infrastructure, which depends on stablecoin availability.

In the meantime, Tron founder Justin Sun’s relations with the political moving circle in the U.S. are under the new spotlight. Cryptadamist cited the talks between Sun and Binance regarding a brand new stablecoin project, USD1, which President Donald Trump supports. This has increased issues regarding compliance and transparency regarding stablecoins’ workings.

A report published in Reuters earlier revealed that Binance carried out More than eight billion US dollars in transactions with Iranian exchanges. That context together with the wallet freezes, supports the scrutiny that digital asset networks that enable flows in sanctioned areas have gained.

Tether’s $700 million freeze signals a firmer stance on regulatory enforcement. With Iranian-linked flows under investigation and the U.S. moving toward tighter stablecoin laws, the spotlight on crypto compliance is growing sharper.

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