A $344 million USDT freeze has exposed how Iran-linked funds are routed through stablecoin networks. Chainalysis analyzed the activity across brokers, intermediary wallets, and DeFi protocols tied to Central Bank of Iran-linked addresses in an April 27 blog post.
Freeze and Sanctions in Tandem
On April 23, 2026, Tether froze over $344 million in USDT across two blockchain addresses, acting on information shared by the U.S. Office of Foreign Assets Control (OFAC) and law enforcement. Chainalysis tied the addresses to activity involving Iranian exchanges and intermediary wallets interacting with Central Bank of Iran-associated accounts. The balances matched the frozen amount. The blockchain analytics firm stated: “Iran’s digital asset networks provide the critical financial infrastructure needed to launder the billions of dollars generated by these shadow fleet vessels back to the IRGC and Iran-aligned terrorist organizations across the region.”
Transaction Flow and Key Actors
Chainalysis detailed a multi-step flow: funds moved from brokers into stablecoins, through intermediary wallets, across bridges and DeFi protocols, before returning to Iranian crypto channels and entities affiliated with the Islamic Revolutionary Guard Corps (IRGC). In late 2025, sanctioned individual Babak Morteza Zanjani published leaked documents that included cryptocurrency addresses he claimed were tied to the Central Bank of Iran. Those materials indicated a broker helped the regime buy stablecoins with fiat. That broker had exposure to Alireza Derakhshan, who coordinated more than $100 million in crypto purchases linked to Iranian oil sales from 2023 to 2025.
Strait of Hormuz Risks
The analysis also flagged fresh compliance risks around the Strait of Hormuz. Iran reported collecting toll payments from commercial vessels, while scammers allegedly targeted shipping firms trying to comply. Some companies paid fraudulent actors and were later confronted by IRGC naval vessels after Iranian authorities did not receive the funds. Payment methods remain under investigation, but Chainalysis noted that stablecoin use would fit recent Iranian on-chain activity if confirmed. Chainalysis concluded: “Central Bank of Iran funds were laundered through several bridge and DeFi protocols before being cycled back into the mainstream Iranian crypto ecosystem.” This continuous, traceable pathway links funding sources, routing layers, and sanctioned entities.