The US government has frozen more than $340 million in cryptocurrency belonging to the Central Bank of Iran in recent weeks. The funds were held as digital assets on several platforms, but the Donald Trump administration, through the Office of Foreign Assets Control (OFAC), was able to block and seize them. The success of the operation is explained by the fact that the assets were in the USDT stablecoin issued by Tether — an American corporation subject to US law.
Iran chose a not particularly secure form of storage: USDT is pegged to the dollar and is issued by a company registered in the US. Washington simply demanded that Tether freeze the wallets and confiscate the funds. Had the assets been held in Bitcoin or other decentralized coins, the government would not have had the same leverage. This case clearly shows that the state's pressure is not directed at blockchain technology itself, but at its weak links — companies and platforms connected to the real world.
Blockchain technology functions as a transparent ledger of transactions, not as a shield for anonymity. All movements between wallets are recorded publicly, albeit under pseudonyms. However, there are tools and platforms that can trace addresses and link them to real identities. That is precisely what helped US authorities quickly identify the Iranian wallets and block their contents.
Control over cryptocurrencies is exercised through centralized access points: stablecoin issuers, exchanges and swap services. The US can successfully pressure Tether and USDT, but its power is limited with respect to truly decentralized networks or companies outside its jurisdiction. Therefore, authorities prefer to target not the technology, but the "points of contact" with the traditional financial system — exchanges, banks and fiat on/off‑ramp platforms.
The answer to the question "Is cryptocurrency safe?" depends on the specific asset and how it is stored. Decentralized coins like Bitcoin are relatively protected from state intervention, but stablecoins and assets on centralized platforms are vulnerable. Storing funds on hardware wallets like Ledger provides more security than leaving them on large exchanges, which can be hacked or sanctioned. Technological decentralization is not a panacea if the assets are still linked to traditional finance through human and institutional elements.
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Why did Iran choose the USDT stablecoin to store state funds rather than more decentralized cryptocurrencies, despite the known risk of freezing? - Iran likely preferred USDT because of its stability relative to the US dollar, which is critically important for preserving the purchasing power of state funds amid high rial inflation. Decentralized cryptocurrencies (for example, Bitcoin) are too volatile to serve as reserves. The risk of Tether freezing is offset by control over wallets and the possibility of using hidden addresses or mixers to complicate tracking by the US.
How do Iranian citizens and companies typically access cryptocurrencies under strict international sanctions? - Access is arranged through informal channels: P2P exchanges on Telegram or WhatsApp where traders agree deals directly; local crypto platforms (for example, Nobitex or Wallex) that operate only within Iran; and by buying cryptocurrencies for cash from local dealers. Due to sanctions, international exchanges (Binance, Coinbase) block Iranian users, so the main methods become offline exchange or using VPNs to register on exchanges.
What role does the Central Bank of Iran play in using cryptocurrencies to bypass financial restrictions, and what other such attempts are known? - The Central Bank of Iran (CBI) legalized crypto mining as an industry (2019) and uses cryptocurrencies for foreign trade settlements, bypassing the SWIFT banking system. Known attempts include launching a state stablecoin "PayMon" (pegged to the rial), as well as talks with Russia about creating a joint cryptocurrency for trade based on a "gold standard." In addition, Iran actively uses crypto exchanges to convert oil revenues into USDT and to purchase imports via chains of crypto transactions.
Full version: مطاردة في عالم الـ"بلوك تشين".. هكذا نجحت أمريكا بتجميد أصول إيرانية مشفرة