In a significant move against the Iranian military and its financing methods, Treasury Secretary Scott Bessent announced on Friday that the U.S. has successfully seized approximately $1 billion in cryptocurrencies from entities associated with Iran. This development underscores the U.S. government’s intensified efforts to disrupt financial flows supporting Iran’s activities, particularly in the ongoing conflict that began in February.
During his remarks at the 2026 Reagan National Economic Forum in Simi Valley, California, Bessent shared insights on the seizures, noting that many individuals holding these digital assets may be unaware their funds have been captured. “I believe that we have seized about $1 billion of their crypto,” he stated in an interview with Fox Business Network’s Larry Kudlow. “Some of them may be typing in right now, and they might not have realized that their wallet had been grabbed.”
This operation aligns with broader efforts to mitigate the Iranian government’s ability to benefit from oil flows through the strategically vital Strait of Hormuz, a waterway responsible for 20% of the world’s oil supply. Amid military tensions, the strait has seen significant disruptions, raising concerns over global economic stability.
The timing of Bessent’s comments coincides with reports that the U.S. and Iran may be nearing a potential agreement aimed at alleviating the escalating tensions. Negotiators have reportedly reached a preliminary understanding that could extend a fragile ceasefire, pending approval from President Donald Trump.
Complicating the financial landscape further, Iranian entities, particularly the Islamic Revolutionary Guard Corps (IRGC), have reportedly embraced cryptocurrencies like Bitcoin for various operations, including maritime insurance and shipping tolls. According to a state-affiliated Iranian news agency, the IRGC is promoting a Bitcoin-based maritime insurance platform called Hormuz Safe. Additionally, plans have emerged for oil tankers transiting the strait to pay fees in Bitcoin, a measure designed to circumvent international sanctions due to its untraceable nature.
While Bessent did not explicitly connect the cryptocurrency seizures to these reported schemes, he acknowledged that they are part of a larger strategy to counteract Iran’s military financing. Reports last April also highlighted fraudulent activities where scammers posed as Iranian officials, demanding payments from shipping companies in Bitcoin and Tether’s USDT stablecoin.
Last year, Israel’s National Bureau for Counter Terror Financing claimed that the IRGC received approximately $1.5 billion in Tether, further emphasizing the complexities surrounding Iran’s financial operations with digital currencies. The ongoing developments signal a crucial intersection between cryptocurrency management and national security, reflecting the growing scrutiny of digital assets in the global financial system.
