Tether Faces Legal Action for $344 Million in Frozen USDT Linked to Terrorism

Victims of Iranian-backed terrorism have filed a motion in a Manhattan federal court seeking to compel Tether to release over $344 million in frozen USDT stablecoins. The funds were frozen after the U.S. Treasury's OFAC designated two Tron wallet addresses as linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). The plaintiffs, including survivors of past terrorist attacks, argue that the frozen USDT constitutes 'blocked property' under federal law, making it subject to seizure to satisfy their long-standing court judgments against Iran. Attorney Charles Gerstein is leading this legal effort, which builds on previous attempts to recover funds from crypto platforms. The case is currently pending, and no ruling has been issued yet. This legal strategy could set a precedent for how digital assets are treated in terrorism-related cases.

Key Points: • Victims of Iranian-backed terrorism are seeking $344 million in frozen USDT from Tether. • The funds were frozen due to OFAC sanctions against designated IRGC wallet addresses. • Attorney Charles Gerstein aims to use crypto infrastructure to recover long-unpaid terrorism judgments.