Arbitrum Asset-Seizure Counsel Petitions Court to Order Tether to Transfer $344 Million in Frozen USDT

According to reports from BlockBeats, Charles Gerstein, the lead counsel for an Arbitrum-related asset seizure initiative, has petitioned a U.S. federal court to compel Tether to transfer approximately $344 million in frozen USDT. These assets were previously immobilized after being linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), an entity sanctioned by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). Gerstein argues that the frozen stablecoins should be redistributed to victims holding unsatisfied terrorism judgments against the Iranian state. The motion represents a significant legal effort to repurpose sanctioned digital assets for compensatory purposes. While the specific filing date was not disclosed in the initial report, the legal maneuver highlights increasing pressure on stablecoin issuers to comply with judicial mandates regarding sanctioned funds.