Treasury Secretary Scott Bessent announced Friday that the United States has seized approximately $1 billion worth of cryptocurrency from entities linked to Iran's military, describing the operation as a sweeping crackdown conducted since the conflict began in February.
Speaking at the 2026 Reagan National Economic Forum in Simi Valley, California, Bessent told Fox Business Network's Larry Kudlow that some of the targeted individuals may not yet be aware their funds are gone.
"I believe that we have seized about $1 billion of their crypto," Bessent said. "Just outright grabbed the wallets. Some of them may be typing in right now, and they might not have realized that their wallet had been grabbed."
The remarks underscore the U.S. government's broader effort to pressure Iran's government, which benefits economically from oil traffic through the Strait of Hormuz — a waterway through which approximately 20% of the world's oil flows and which has remained largely restricted amid the ongoing conflict.
Bessent's comments come as the U.S. and Iran are reportedly edging closer to a diplomatic agreement. Negotiators have reportedly reached a deal that could extend a fragile ceasefire, pending approval from President Donald Trump, according to reports citing Axios.
Iran's Islamic Revolutionary Guard Corps has been increasingly embracing cryptocurrency for financial operations. Fars, a state-affiliated Iranian news agency, reported this month that the Revolutionary Guard has promoted a Bitcoin-settled maritime insurance platform called Hormuz Safe. In April, the Financial Times reported that Iran was planning to require oil tankers passing through the strait to pay transit fees in Bitcoin. An Iranian official quoted at the time said the fees "can't be traced or confiscated due to sanctions."
On Friday, Bessent did not directly link the seizures to that reported scheme, nor did he specify whether the confiscated assets included Bitcoin specifically.
Separately, scammers impersonating Iranian authorities have been targeting shipping companies with fraudulent payment demands in Bitcoin and Tether's USDT stablecoin, Reuters reported in April. Last year, Israel's National Bureau for Counter Terror Financing alleged that Iran's Islamic Revolutionary Guard Corps had received $1.5 billion in USDT stablecoin.
Why it matters
The U.S. seizure of approximately $1 billion in crypto demonstrates that digital assets can be confiscated by authorities, in contrast to the claim by an Iranian official that Bitcoin transit fees 'can't be traced or confiscated due to sanctions.'
Iran's Islamic Revolutionary Guard Corps has been documented using cryptocurrency — including USDT stablecoin and Bitcoin — for financial operations, with Israeli authorities alleging $1.5 billion in USDT received and scammers impersonating Iranian authorities targeting shipping companies with crypto payment demands.
Iran has been actively building crypto-denominated financial infrastructure, including the Hormuz Safe Bitcoin-settled maritime insurance platform and reported plans to collect oil tanker transit fees in Bitcoin, illustrating the scale of crypto adoption within sanctioned state-linked entities.
