Iran-Linked USDT Faces Scrutiny Amid Sanctions Bypass Allegations

US Senate investigators have found that Iran has heavily relied on Tether's stablecoin USDT to bypass US sanctions. A report by the Senate Permanent Subcommittee on Investigations, published on September 28, analyzed 846 wallets linked to Iran and other sanctioned groups.

The investigation found that 84% of these wallets used USDT for trading, with some wallets using it as their primary form of currency. The stablecoin was also found to be significant in Iran's underground banking system.

Tether disputed the report's findings, stating that USDT is not a haven for sanctioned entities or criminals. However, the company did acknowledge freezing over $550 million in assets tied to Iranian networks in 2026.