Iran Evades Sanctions with Tether's USDT Stablecoin

A Senate report has revealed that Iran has been evading US sanctions using a dollar-pegged cryptocurrency called USDT, issued by Tether. The report found that 84% of 846 crypto wallets sanctioned by the US and Israel in connection with Iran traded almost exclusively in USDT.

The subcommittee, led by Sen. Richard Blumenthal (D-CT), faulted Tether for failing to quickly freeze tokens held in sanctioned wallets.

Tether's representatives did not respond to requests for comment, but the findings spotlight the company's close relationship with Cantor Fitzgerald, which has earned fees managing USDT's reserves since 2021 and invested in the company through a $600 million convertible bond that entitles it to a 5% stake.

Tether's CEO personally negotiated this relationship, but after joining Trump's Cabinet, Commerce Secretary Howard Lutnick sold his interest in Cantor to trusts benefiting his four children. One of those trusts borrowed an undisclosed sum from Tether, according to Bloomberg.