The US Department of Justice has launched a civil forfeiture action seeking to seize $61 million in Tether's USDT stablecoin that prosecutors allege is linked to sanctioned Iranian oil sales, according to court filings.
The Forfeiture Case
Prosecutors are targeting $61.19 million worth of USDT that was frozen earlier this year across 10 addresses on the Tron blockchain. Authorities contend the funds represent proceeds from black-market Iranian oil transactions carried out in violation of US sanctions.
The action underscores how digital assets have become a focal point in Washington's efforts to disrupt financial networks tied to Tehran. By using stablecoins, entities allegedly attempted to move value across borders while evading traditional banking channels subject to sanctions enforcement.
Stablecoins have become both a tool for evasion and a target for enforcement in the fight over Iranian oil money.
Tether's Role
Tether, the issuer of USDT, froze the assets in 2025 after the addresses were flagged in connection with the illicit oil proceeds. The company retains the ability to blacklist wallets and immobilize tokens, a capability that has increasingly aligned it with law enforcement priorities.
The frozen funds were spread across multiple Tron addresses, a network favored for stablecoin transfers due to its low transaction fees and high throughput. That popularity has also made it a frequent venue for illicit money movement.
Key details of the case include:
- $61.19 million in USDT targeted for forfeiture
- Funds frozen across 10 separate Tron addresses
- Assets allegedly tied to sanctioned Iranian oil sales
The case reflects a broader pattern of cooperation between stablecoin issuers and US authorities, as regulators press for tighter controls over how digital dollars are used in the global economy.