US plans to seize $1B in crypto linked to Iran this week: Scott Bessent

Speaking during an appearance at the Newsmax Policy Summit on Thursday, Bessent stated that the planned digital asset seizure forms a central component of ongoing US economic restrictions against Tehran amid the country’s most recent military conflict, which erupted in February. While outlining the aggressive enforcement action during a discussion with Newsmax’s Greta Van Susteren, the Treasury Secretary did not specify whether the targeted digital assets involved specific centralized or decentralized exchanges, nor did he clarify if the impending action resulted from direct intervention or cooperation by stablecoin issuers.

"We know where it is, and we are isolating them," Bessent told Van Susteren, emphasizing that the maneuver is designed to systematically cut off Iran from global financial liquidity and cripple its capacity to project power or fund proxy networks through alternative financial channels.

The Treasury Department’s Office of Foreign Assets Control, commonly known as OFAC, previously announced in August that it was actively targeting international cryptocurrency exchanges that facilitate the transfer of illicit funds to Iran’s Islamic Revolutionary Guard Corps (IRGC). At the time of that announcement, Bessent indicated that the United States planned to significantly ramp up economic pressure on the Iranian regime, focusing specifically on illicit financial networks funding state operations regardless of whether transactions were denominated in US dollars, local fiat currency, or digital assets.

Thursday’s announcement follows a series of similar actions and statements from top economic officials regarding Tehran’s use of decentralized finance and digital ledgers to evade traditional banking restrictions. In an interview conducted in April, Bessent made a comparable claim, revealing that federal authorities had already successfully seized approximately $500 million in cryptocurrency tied directly to Iranian state actors and affiliated entities.

The adaptability of modern financial technology has made digital assets a key frontier in international sanctions enforcement. In response to mounting regulatory scrutiny and pressure from Western governments, major players in the digital asset industry have increasingly cooperated with law enforcement and intelligence agencies to freeze illicit funds. Notably, stablecoin issuer Tether reported in September that it had successfully frozen an aggregate of $550 million worth of its USDt tokens throughout the year as part of coordinated compliance efforts supporting US authorities in their sanctions regime against Iran. This total included a massive single-month enforcement action in April, during which Tether froze $344 million in suspected illicit funds.

The broader geopolitical context highlights a growing reliance by sanctioned states and illicit networks on cryptocurrencies to bypass traditional banking gatekeepers like the Society for Worldwide Interbank Financial Telecommunication, or SWIFT. Because digital assets can be transferred across borders rapidly and without the oversight of traditional correspondent banking networks, governments and regulatory bodies have increasingly empowered agencies like OFAC and financial crimes enforcement networks to monitor blockchain transactions, trace illicit wallet addresses, and compel offshore platforms to comply with international anti-money laundering and counter-terrorist financing standards.

As the US Treasury continues to execute its strategy of maximum economic pressure, market participants and digital asset platforms face heightened scrutiny regarding compliance, know-your-customer protocols, and transaction monitoring. The impending seizure of $1 billion in crypto assets underscores the evolving nature of modern economic warfare, where digital ledgers and blockchain analysis tools have become just as vital to national security operations as traditional naval blockades and asset freezes in conventional banking institutions. The Treasury Department is expected to provide further details regarding the enforcement mechanism and the specific jurisdictional targets of this week’s operation as the legal and technical processes unfold.