- US Treasury Secretary Scott Bessent says that the US “grabbed the wallets” of Iran’s government, seizing over $1 billion in crypto assets.
- Congressman Nick Begich has proposed a bill that would allow the US to establish a national Bitcoin reserve, funding it with BTC seized from Iran.
The US has seized over $1 billion worth of crypto from Iran as the Trump administration ramps up pressure on the Middle Eastern nation in the ongoing conflict.
Speaking at the Reagan National Economic Forum, Treasury Secretary Scott Bessent revealed that the seizure has been part of Operation Economic Fury, which aims to cripple Iran by cutting off its financial rails. It’s a companion to Operation Epic Fury, which is the US government’s military campaign against Iran.
Bessent says that the US “just grabbed their wallets,” adding that the seizure has cut off an important financial channel for Iran and that “they are at the end of their tether now financially.”
Crypto has become important for Iran as it continues to face sanctions that make it impossible to move money through traditional rails. According to a report from Chainalysis, the country’s crypto ecosystem hit $7.8 billion last year, with its parallel military force, IRGC, accounting for at least half of all on-chain activity.
As we recently reported, one of the companies that has been caught in the middle of the Iran crypto scandal is Binance. The world’s largest exchange was accused by the Wall Street Journal of moving $850 million for the Iranian government, with most of the activity being known to the exchange’s leadership. Binance has denied the allegations and threatened legal action.
Will the Iran Crypto Seizure Result in a Bitcoin Reserve?
It’s not yet clear how the US “grabbed” the Iranian crypto wallets or what coins were seized. However, given its history, it’s most plausible that an overwhelming majority of Iran’s crypto was Bitcoin. Chainalysis revealed in a report earlier this year that most Iranians, including the IRGC, prefer the top coin.
While Bessent did not reveal what the US intends to do with the seized crypto, the government will likely keep it, as Trump has been against selling. This could be the first batch of BTC that goes into a new national reserve proposed by Alaskan Congressman Nick Begich.
As we reported, Begich has introduced a new bill that seeks to establish two reserves: one for BTC only, and another for all other cryptos. He says that rather than depend on taxpayer money to fund the reserve, the government should first deposit all the crypto it has seized from criminals and enemy countries, specifically mentioning Iran’s crypto seizure as the ideal first deposit.
