Blumenthal Demands Tether Investigation Over Iran Links

U.S. Senator Richard Blumenthal is calling on federal authorities to investigate potential sanctions and banking law violations involving Tether, a digital currency issuer.

The request comes after a report prepared by Democratic investigators on the Senate Permanent Subcommittee on Investigations criticized Tether's role in Iran's financial networks and its wallet-blocking practices. The 28-page report found that USDT, the primary cryptocurrency used by Iranian wallets, was linked to 87% of 757 wallets examined.

The report also highlighted ties between Tether and the U.S. administration, including a former head of the White House Crypto Council becoming CEO of Tether U.S.

In response to the report, Senator Blumenthal argued that these relationships raise questions about oversight and whether the company is receiving lax treatment for its anti-money laundering obligations. Tether has denied any wrongdoing, stating that it helps freeze funds when provided with credible information from law enforcement.