According to a report from the Senate Democrats, USDT was seen in 84% of 846 sanctioned crypto wallets associated with Iran. The Tether company challenges the description and claims that it h
The Senate of the United States is now investigating Tether’s USDT in relation to crypto dealings that have connections to Iran. This investigation was led by Senator Richard Blumenthal through the Senate Permanent Subcommittee on Investigations. The Senate analyzed transactions involving 846 crypto wallets that it had sanctioned or considered for seizure due to their links to Iran and its regional proxies. It turned out that in 84 percent of these crypto wallets, USDT was the only crypto coin being transacted. According to the report, such deals made it possible for Iranians to shift money across the globe while evading U.S. sanctions. The report also mentioned crypto dealings with Iran’s currency and the Central Bank of Iran.
Tether refuted the label that USDT provides a safe haven for sanctioned individuals. The firm said that it works with U.S. regulators and assists in fighting any illicit crypto activity. Additionally, Tether mentioned that it was able to freeze $550 million of Iran-related USDT in 2026. The CEO of Tether, Paolo Ardoino, said that the company has been working against sanctioned actors, terrorists, and criminals from the very beginning.
This statement differs greatly from the allegations stated by the Senate in its investigation report. According to the report, Tether did not always freeze the wallets of those who were designated before 2024. Furthermore, there is no proof that Tether actively freezes wallets that are associated with illicit Iranian finance.
These findings come at a time when the US government is increasing pressure on Iran through sanctions, along with reviewing the use of cryptocurrency in evading sanctions. Blumenthal had earlier asked the Treasury and Justice Department to look into the sanctions and anti-money laundering procedures of Tether. This committee had already expressed concern about the use of USDT on Iranian cryptocurrency exchanges and their shadow banking systems.
Treasury had already flagged cryptocurrency as one of the components of Iran’s shadow banking system. These new findings now include analysis of transactions on wallets, alongside the previous concerns. For crypto markets, the findings put more focus on compliance and control measures for stablecoins. The ability of Tether to freeze USDT is an important aspect of the discussion.
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