Treasury Chief Confirms Nearly $1B in Seized Iranian Cryptocurrency Holdings
Scott Bessent, serving as US Treasury Secretary, revealed that American authorities have confiscated approximately $1 billion worth of cryptocurrency from Iranian sources, representing twice the amount previously reported in April.
American authorities have confiscated approximately $1 billion worth of cryptocurrency belonging to Iranian entities, according to Treasury Secretary Scott Bessent's announcement on Friday. He further noted that certain wallet holders might remain unaware that their digital assets have been seized.
"I believe that we have seized about a billion dollars of their crypto," Bessent stated during his appearance at the Reagan National Economic Forum. "Just outright grabbed the wallets. Some of them may be typing in right now and not have realized that their wallet had been grabbed," he added.
According to Bessent, these confiscations represent a component of the American government's financial offensive against Iran, designated as Operation Economic Fury. The initiative, which commenced in March 2025, has concentrated on Iranian holdings through various channels, including cryptocurrency seizures, bank account freezes, and collaborative efforts with European partners to confiscate real estate properties.
"I think between five and a half to six weeks of an incredibly successful military campaign and Operation Economic Fury, where we have really cut them off. They are at the end of their Tether now financially," he said.
Iran's financial state is dire
According to the Treasury secretary, the Iranian regime had been extracting between $400 to $500 million monthly and distributing these funds among approximately 80 leaders prior to American intervention. He indicated that Iran's inflation rate has probably exceeded 200%, food vouchers are now being handed out, internet services have been suspended, and between 40 to 50% of Iranian military personnel are not receiving their salaries.
Bessent additionally commented on current negotiations with Iran, highlighting the challenges of engaging with a fragmented leadership hierarchy in the aftermath of US and Israeli military operations targeting high-ranking regime officials.
The recently revealed $1 billion amount is approximately twice the $500 million in Iranian digital currency holdings that the Treasury Department reported seizing in late April, and significantly exceeds the $344 million in confiscated crypto assets that was disclosed earlier during the month.
Iran eyes Bitcoin-powered insurance scheme for Hormuz
According to Cointelegraph's previous reporting, Iran is considering a proposal to capitalize on its control over the Strait of Hormuz using a Bitcoin-based insurance framework. A government document referenced by Fars News Agency, a media outlet with strong connections to the Islamic Revolutionary Guard Corps, detailed a platform designated as "Hormuz Safe," which would offer digital marine insurance purchased with Bitcoin and processed on the blockchain, with the potential to generate more than $10 billion in revenue for the nation.
In early April, a spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters' Union said certain ships would be able to pass through the strait provided that they pay a tariff of $1 per barrel of oil in Bitcoin.