US to Seize $1 Billion in Crypto Assets Linked to Iran, Says Treasury Secretary

US Treasury Secretary Scott Bessent announced at the NPolicy conference in Washington that the Trump administration is expected to seize digital currencies linked to Iran this week, with an estimated value of $1 billion. According to Bessent, US authorities have already tracked the assets and can act against them immediately.

Targeting Iranian Financial Networks

The move is part of the broader US policy against Tehran, which has expanded beyond the maximum pressure strategy toward comprehensive economic isolation aimed at targeting Iranian financial networks and pressuring the Islamic Revolutionary Guard Corps (IRGC). However, discrepancies have emerged in recent months between administration statements and official Treasury reports regarding the exact volume of frozen assets.

There is also a legal distinction between asset freezing and full forfeiture. Freezing prevents access or use of funds but does not necessarily transfer ownership to the government, whereas full forfeiture can transfer control and ownership to the state through appropriate legal proceedings.

Blockchain Dynamics and Stablecoins

The ability of authorities to act against crypto assets depends heavily on the coin type and custody method. Bitcoin is considered censorship-resistant and cannot be frozen or seized directly via blockchain protocol alone, though central exchanges or custodial services can sometimes block access.

In contrast, stablecoins such as Tether's USDT possess technological capabilities that allow the issuing company to freeze specific addresses. Over the past year, Tether has cooperated with US authorities to freeze hundreds of millions of dollars in USDT tied to Iranian entities and the Central Bank of Iran.

"We know exactly where the coins are," Bessent stated during an interview, highlighting the administration's precision in tracking illicit digital assets.

Economic Sanctions and Blacklisting

The US campaign extends beyond digital currencies, incorporating additional economic measures, restrictions on international flights, and strict oversight of Iran's land borders. Under the Economic Outcast operation initiated in August, the US Treasury blacklisted several major Iranian crypto exchanges, including Nobitex, Bitpin, Ramzinex, and BitBank, the latter accused of transferring hundreds of millions in Bitcoin to the IRGC.