Lawyer Targets Tether for $344 Million in Frozen USDT Linked to Iran
Lawyer behind Arbitrum crypto seizure fight now targets Tether for $344 million
Coindesk
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Attorney Charles Gerstein is pursuing Tether for the release of over $344 million in frozen USDT linked to Iran's Islamic Revolutionary Guard Corps. This legal action aims to satisfy long-standing terrorism judgments held by victims of Iranian-sponsored attacks, leveraging Tether's ability to freeze and reissue digital assets.
- 01The plaintiffs seek the transfer of 344,149,759 USDT from Tether, which is currently frozen due to OFAC sanctions against the IRGC.
- 02Victims include survivors of the 1997 Hamas suicide bombing in Jerusalem, who are pursuing unpaid terrorism judgments against Iran.
- 03Gerstein's strategy contrasts with more complex cases involving North Korea-linked funds, focusing on crypto platforms that can control digital assets.
- 04Tether's administrative controls allow it to freeze wallets and reissue tokens, making this case legally distinct from other crypto disputes.
- 05The case could set a precedent for using crypto systems to fulfill court judgments against state sponsors of terrorism.
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Attorney Charles Gerstein is leading a legal effort to compel Tether, a major stablecoin issuer, to release over $344 million in frozen USDT linked to the Islamic Revolutionary Guard Corps (IRGC). This move is part of a broader strategy to satisfy long-standing U.S. terrorism judgments against Iran, particularly for victims of Iranian-sponsored attacks, including those affected by the 1997 Hamas suicide bombing in Jerusalem. The plaintiffs argue that since Tether has already frozen the funds in response to sanctions from the Office of Foreign Assets Control (OFAC), it is legally positioned to reissue an equivalent amount to a wallet controlled by their counsel. Gerstein's approach contrasts with his previous legal battles involving North Korean funds, where ownership issues complicated proceedings. In this case, the ownership of the frozen USDT is clearer, as OFAC has designated the Tron wallets as belonging to a state sponsor of terrorism. This case could establish a significant precedent regarding the use of cryptocurrency infrastructure to execute court judgments against entities designated as sponsors of terrorism.
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If successful, this legal action could provide financial restitution to victims of terrorism, setting a precedent for future claims against cryptocurrency platforms.
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