Iran Uses Tether's USDT to Bypass Sanctions and Fund Proxies

A new Senate probe has uncovered evidence that Iran is using Tether's stablecoin USDT to bypass U.S. sanctions and fund proxies like Hezbollah.

The Permanent Subcommittee on Investigations, led by Sen. Richard Blumenthal (D-Conn.), found that USDT accounts for about 60% of all stablecoins by market capitalization.

USDT's dollar-pegged nature makes it useful for payments and money laundering, allowing Iran to dodge the sanctions dragnet and move funds for the regime and its proxies.

The report reviewed 846 wallets sanctioned by the U.S. and Israeli governments over Iran ties and found that 84% of them traded exclusively or almost exclusively in USDT.