Iran's Islamic Regime Sees Tether as Lifeline Amid Sanctions

A new report from the US Senate has found that Iran's Islamic regime is using Tether's stablecoin, USDT, as a 'financial lifeline' to move money across its borders and support its currency amid US sanctions. The report, led by Senator Richard Blumenthal of Connecticut, analyzed 846 crypto wallets sanctioned by Israel and the US in connection with Iran and found that 84% transacted in USDT.

The report claims that Tether's stablecoin has become a tool for funding proxy organizations, including Hezbollah, and allows the Iranian government to move money across its borders. The Senate Democrats are calling on the Treasury and Justice Departments to investigate Tether. In response, Tether CEO Paolo Ardoino stated that USDT is not a haven for sanctioned actors or terrorist organizations.

The report found that nearly $550 million in Iran-linked USDT was frozen by the Treasury Department earlier this year. The Treasury has stepped up sanctions against Iran since the start of its military campaign against the country, including the launch of Operation Economic Outcast last month, which included a focus on crypto transactions.