President Donald Trump revealed that the United States would return Iran's frozen money rather than seize it, while warning that withholding those funds would destroy global trust in the US dollar.
Trump's remarks at the G7 Summit touch on a major issue in the crypto space—where the threat of asset seizure is a strong reason to hold neutral and unlimited reserves like Bitcoin.
Returning Frozen Funds
Trump made this statement at the G7 conference in France, responding to questions about whether Washington would unfreeze Iran's assets.
He stresses a clear distinction between giving funds to Iran and merely releasing Iranian funds that had previously been frozen by the US government.
“That’s not our money. That’s their money. And we froze it at one point,”
Trump revealed that he personally considered holding onto those funds before ultimately deciding against it. Recent reports indicate that the US has successfully seized Iranian crypto assets worth a cumulative $1 billion by the end of May.
*BESSENT: HAVE SEIZED ABOUT $1 BLN OF IRANIAN CRYPTO HOLDINGS* BESSENT: WE THINK IRAN WAS STEALING $400M – $500M A MONTH
— zerohedge (@zerohedge) May 29, 2026
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Warning About Trust in the Dollar
Trump asserted that holding onto the seized funds could undermine the dollar's position and dominance as a global reserve asset.
“If we don’t return it, no one will want to invest in the dollar anymore,”
He links this decision to the strength of the dollar during his administration.
“The dollar has become very strong under my leadership,”
Trump also emphasized that the US is not directly funding Iran, thus distinguishing this decision from cash transactions that occurred in the past.
“We don’t give money. Only if they do the right thing,”
Why the Crypto World is Paying Attention
The question of this seizure is at the core of Bitcoin's appeal. Every time Washington wields the dollar as a weapon, it actually strengthens the case for having a neutral store of value that isn't under any government's control.
This thinking underpins the debasement strategy, where investors use Bitcoin as a hedge against fiat risk and money printing.
Trump himself even suggested a strategic reserve to boost the position of the United States.