Iran Tied to Tether's USDT Stablecoin for Bypassing Sanctions

A Senate report has accused Iran of using Tether's USDT stablecoin to bypass US sanctions and fund proxy groups, including Hezbollah. The report analyzed over 850 wallets sanctioned by the US and Israel and found that 84% transacted exclusively or near-exclusively in USDT.

The report criticizes Tether for not quickly freezing USDT in sanctioned wallets, despite having the ability to do so. It also suggests that Iran's reliance on USDT may be easing, with blockchain analytics data showing a decline in the token's share of transactions attributed to Iran from 72% in 2024 to 67% in 2025.

The report ties Iran's use of USDT to continued oil sales to allies such as China. It also criticizes Tether for failing to freeze USDT quickly in wallets sanctioned by the US and Israel, noting that the company can freeze tokens and recreate them in another wallet.