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– U.S. Treasury Department head Scott Bessent said the United States has “broken into the wallets” of the Iranian government, embezzling over $1 billion in crypto assets.

Congressman Nick Begich has introduced a bill that would allow the United States to establish a Bitcoin reserve to be funded by BTC seized from Iran.

The United States has seized more than $1 billion worth of cryptocurrencies from Iran as the Trump administration ramps up pressure on the Middle Eastern country in the midst of the ongoing conflict.

Speaking at the Reagan National Economic Forum, Treasury Secretary Scott Bessent explained that the seizure was part of Operation Economic Fury, which aims to paralyze Iran by cutting off its financial flows. This is in addition to Operation Epic Fury, which is the U.S. government’s military campaign against Iran.

Bessent noted that the U.S. “just took their wallets, adding that the seizure cut off a crucial financial channel for Iran and that “they are now financially on edge.

Cryptocurrencies have become a significant tool for Iran as the country continues to face sanctions that make it difficult to move funds through traditional channels. According to a Chainalysis report, the country’s crypto ecosystem reached $7.8 billion last year, with Iran’s parallel military arm, the Islamic Revolutionary Guard Corps (IRGC), accounting for at least half of all online activity.

As we recently mentioned, one of the companies at the center of the Iranian crypto scandal was Binance. The world’s largest exchange was accused by the Wall Street Journal of transferring $850 million to the Iranian government, much of which was known to the exchange’s management. Binance denied the accusations and threatened legal action.

Will the confiscation of cryptocurrencies in Iran lead to the creation of a bitcoin reserve?

It is still unclear exactly how the U.S. seized Iranian cryptocurrencies and which coins were seized. However, given Iran’s history, it is very likely that the vast majority of Iranian cryptocurrencies are bitcoins. Earlier this year, Chainalysis revealed that this is the coin preferred by the majority of Iranians, including the IRGC.

Although Bessent did not specify what the U.S. plans to do with the seized cryptocurrency, the government will likely keep it since Trump opposes the sale. This could be the first batch of BTC sent to the new national reserve proposed by Alaska Congressman Nick Begich.