U.S. Treasury Moves to Seize $1 Billion in Iranian Cryptocurrency

The United States Treasury has announced plans to seize roughly $1 billion in cryptocurrency allegedly held by Iranian entities. Treasury Secretary Scott Bessent said authorities have already identified the funds and are working to isolate them.

Speaking to reporters, Bessent framed the shift as a change in posture — from what he called a "maximum pressure campaign" to an "absolute isolation campaign." He did not say which digital assets were targeted, nor how the seizure would actually be carried out.

Why Bitcoin is hard to freeze

Freezing Bitcoin is technically difficult. Its censorship-resistant design means no central party can block a transfer — unless the coins sit on a centralized exchange, where a custodian can step in.

Stablecoins are a different story. Tether's USDT can be frozen directly by the issuing company. Bessent has previously indicated that earlier seizures of Iranian funds involved popular stablecoins rather than Bitcoin.

Iran's pivot to Bitcoin

Iran has increasingly turned to Bitcoin for international trade. According to reporting from the Financial Times, the country's central bank advised businesses to do whatever was necessary to support the economy, which led to Bitcoin being used to settle cross-border transactions through domestic exchanges.

Earlier this year, Iran also launched a Bitcoin-backed insurance service for its shipping companies.

The wider campaign

The current push builds on a February 2025 national security memorandum that directed the Treasury to sustain pressure on Iran's shadow banking operations, money laundering networks, and sanctions evasion channels. The Trump administration revived the "maximum pressure" campaign within weeks of returning to office.

The practical question is where the identified funds are held. Coins on centralized venues can be frozen; coins in self-custody largely cannot — which decides whether this is an enforceable action or a symbolic one.