Brief
Tether’s USDT Linked to Iran’s Sanctions Evasion, Senate Report Finds
The U.S. Senate has released a report alleging that Tether’s USDT is a key tool for Iran to evade sanctions and fund proxy groups.
By Felo News Desk · Published
A Senate report released Monday claims that Tether’s dollar‑pegged stablecoin USDT is a major conduit for Iranian financial flows that skirt U.S. sanctions. The report, produced by the Senate Permanent Subcommittee on Investigations, examined 846 crypto wallets linked to Iran and its proxies, finding that 84% of them transacted almost exclusively in USDT. Senator Richard Blumenthal, the subcommittee’s top Democrat, said the findings show Tether is central to Iran’s ability to move funds, support its currency and procure drones and other military equipment.
Tether said that in 2026 it had frozen about $550 million in wallets identified by U.S. authorities as connected to Iran’s central bank and sanctions networks, and that it is cooperating with U.S. and international law enforcement. The report criticises Tether for failing to consistently freeze illicit wallets, especially before 2024, and warns that the stablecoin has become a major payment tool for the Iranian regime and its terrorist proxy groups, including Hezbollah.
Key facts
- Tether’s USDT used by 84% of 846 Iranian‑linked crypto wallets (gulfnews.com)
- Senate report criticises Tether for not freezing illicit wallets before 2024 (gulfnews.com)
- Tether froze about $550 million in 2026 in wallets linked to Iran’s central bank (gulfnews.com)
Sources
- [1] gulfnews.com — originally reported as “US Senate Report: Iranian Regime’s ‘Rampant’ Use of Tether Stablecoin to Evade Sanctions and Fund Hezbollah”
