Senate Probe Exposes Widespread Use of Tether’s USDT in Iran-Linked Wallets

A Senate investigation has uncovered widespread use of Tether's USDT stablecoin in Iran-linked wallets, according to a report from The Crypto Times. The investigation found that 84% of 846 Iran-linked wallets used only USDT for transactions.

Tether claims to have frozen around $550 million in Iran-linked USDT with the help of U.S. authorities in 2026. The company argues that its public blockchain allows authorities to track and freeze illicit funds, and points to over $4.9 billion in assets being frozen as a result of their cooperation with law enforcement.

Senator Richard Blumenthal says USDT has become central to Iran's shadow banking system, allowing the country to evade U.S. sanctions and support regional militant groups. Tether CEO Paolo Ardoino counters that public blockchains make it possible for authorities to track where funds move and take action when illegal activity is identified.