Iran terror victims sue Tether for transfer of $344M in frozen USDT

Victims of terrorism linked to Iran have filed a motion in a U.S. court requesting an order for Tether to transfer 344.14 million in frozen USDT to them, The Block reported. The victims have an outstanding, unpaid judgment against the Iranian government and the Islamic Revolutionary Guard Corps (IRGC) for damages related to terrorist acts. The plaintiffs argue that because the USDT was held in wallets associated with the IRGC, an entity sanctioned by the Office of Foreign Assets Control (OFAC), the funds are subject to seizure and execution under U.S. federal law regarding terrorist assets. They also noted that Tether has previously burned and reissued frozen assets at the request of U.S. law enforcement, suggesting a similar method could be used to transfer the funds to the victims' wallets. The lawsuit is reportedly part of a larger effort to enforce judgments totaling approximately $2.42 billion in terrorism-related damages against Iran.