Terrorism Victims Seek $344M in Frozen Crypto from Tether
Treasury's $344M Iran crypto seizure now claimed by terrorism victims
Thestreet
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A group of American families affected by a 1997 Hamas bombing is petitioning a Manhattan federal court to compel Tether to transfer over $344 million in frozen USDT stablecoins to their attorneys. This amount is part of a broader effort to secure compensation from Iran, which has been linked to the funds through U.S. sanctions.
- 01The plaintiffs hold unpaid U.S. court judgments against Iran totaling $552.3 million in compensatory damages and $1.86 billion in punitive damages.
- 02The frozen USDT was part of 'Operation Economic Fury,' aimed at disrupting Iran's financial operations.
- 03The U.S. Treasury's Office of Foreign Assets Control (OFAC) added two Tron blockchain wallet addresses to its Specially Designated Nationals (SDN) list, linking them to the Islamic Revolutionary Guard Corps-Qods Force.
- 04Tether's ability to manage USDT balances allows for the potential reissuance of funds to the plaintiffs, as it can freeze and blacklist wallets.
- 05The plaintiffs' motion was filed on May 14 in the U.S. District Court for the Southern District of New York.
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A group of American families affected by the 1997 Hamas bombing in Jerusalem is seeking the transfer of over $344 million in frozen USDT stablecoins from Tether, the issuer of the cryptocurrency. This legal move, filed on May 14 in the U.S. District Court for the Southern District of New York, aims to redirect these funds to the plaintiffs' attorneys as part of their efforts to collect on unpaid U.S. court judgments against Iran, which total $552.3 million in compensatory damages and $1.86 billion in punitive damages.
The frozen assets originated from the U.S. Treasury's 'Operation Economic Fury,' designed to restrict Iran's financial capabilities. The Treasury Secretary announced the action on April 24, targeting the Central Bank of Iran and linking two Tron blockchain wallet addresses to the Islamic Revolutionary Guard Corps-Qods Force. Tether's administrative controls allow it to freeze and blacklist wallets, which the plaintiffs argue should enable the transfer of the frozen stablecoins to them. This case raises intriguing questions about the legal and technical aspects of cryptocurrency management and the implications for victims of terrorism.
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If successful, this case could set a precedent for how cryptocurrency is treated in legal claims related to terrorism and international sanctions.
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