Senate Probe Exposes Iran’s USDT-Funded Proxy Network

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

The Permanent Subcommittee on Investigations found that about 60% of all stablecoins by market capitalization are held in USDT, which tracks the dollar and is less volatile than other cryptocurrencies.

Treasury has been tightening its economic squeeze since U.S. military strikes in Iran earlier this year, including August's Operation Economic Outcast.

Sen. Richard Blumenthal (D-Conn.) led the probe, which 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.