Tether and Circle simultaneously blacklisted an Ethereum hot wallet belonging to the Iranian cryptocurrency exchange Wallex, causing the stablecoin to be locked while the platform was transferring assets between blockchains.

Blockchain investigator ZachXBT discovered this incident on 03/25/2024. The blocked address is 0x6926…43df, at that time holding about 117,000 USD consisting of Tether (USDT), USD Coin (USDC), and some other small tokens.

The merger of Wallex has caused a freezing situation.

A few hours before being blacklisted, Wallex was reportedly beginning to accumulate cryptocurrency from various hot wallets on Tron and Ethereum, then transferring to BNB Smart Chain (BSC) through cross-chain bridges.

This plan has only been partially successful. Nearly $2.49 million in Binance-Peg BSC-USD has been transferred to another address on BSC, which is 0xf945…ccdd.

The address has recorded only three small BNB transactions used for gas fees. There have been no withdrawal transactions since then. The amount remains completely stagnant.

It is very rare for both major stablecoin players to freeze wallets in such close proximity, indicating that they may have coordinated compliance enforcement.

Wallex is currently not officially listed by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury, but all crypto activities related to Iran are at risk of facing widespread sanctions.

Enhancing control over cryptocurrency flows from Iran.

This incident follows a series of tightening measures on stablecoins related to Iran. In January 2026, OFAC sanctioned two registered exchanges in the UK, Zedcex and Zedxion, for allegedly facilitating over $1 billion in transactions for the Iranian Revolutionary Guard.

Tether alone has blacklisted over $3.3 billion in USDT across more than 7,000 wallets since 2023.

Iranian cryptocurrency exchanges are facing increasing pressure. The Central Bank of Iran in early March 2024 requested major exchanges, including Wallex and Nobitex, to temporarily suspend USDT to toman trading to prevent capital flight amid military conflict between the US and Israel.

Wallex has not yet officially commented. The exchange's website is still active. Approximately $2.49 million on BSC has not been transferred, and other wallets associated with this exchange are at risk of facing a similar situation.