Iran Terror Victims Sue Tether for Return of $344 Million in Frozen USDT
Summary
- Victims of terrorism and their families said they filed a lawsuit against Tether in a U.S. court seeking the return of about $344 million in frozen assets.
- The plaintiffs said 344.14 million USDT in IRGC-linked wallets sanctioned by OFAC are effectively Iranian assets and should be used to fund compensation for victims.
- The plaintiffs also said Tether has previously transferred funds under U.S. government seizure orders, underscoring that a similar asset transfer is possible in this case.
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Victims of Iran-linked terrorism and their families have sued Tether in U.S. court, seeking the return of about $344 million in frozen assets.
The Block reported on May 15 that the plaintiffs asked the U.S. District Court for the Southern District of New York to order the return of 344.14 million USDT held in wallets linked to Iran's Islamic Revolutionary Guard Corps, or IRGC, which were sanctioned by the Treasury Department's Office of Foreign Assets Control.
The plaintiffs have already won damages judgments in U.S. courts over past Iran-linked terrorist attacks. They argue the IRGC-linked wallets are effectively Iranian assets and that the frozen funds should be used to pay those awards. They also wrote that Tether has previously transferred funds in similar cases under U.S. government seizure orders.
Tether froze the wallets on April 24 after OFAC added the addresses to its Specially Designated Nationals, or SDN, list.
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