Senate Probe Uncovers Tether-Backed Iranian Sanctions Evasion

A Senate investigation has uncovered links between Tether's USDT stablecoin and Iran's shadow banking network. The probe, led by Sen. Richard Blumenthal, found that 87% of wallets tied to Iranian terrorist-financing activity primarily used USDT.

The report analyzed 846 cryptocurrency wallets sanctioned or blocked over connections to Iran and its regional proxies. Of these, 757 were tied to Iranian terrorist-financing activity, with the majority using USDT for illicit payments.

Tether's USDT has become a major channel for sanctions evasion, allowing funds to be moved into and out of Iran. The network has also been used to support the country's currency and procure military equipment, such as drones.

Blumenthal has asked the Treasury and Justice departments to investigate whether Tether violated sanctions or banking laws. He has also requested that they determine if Tether adequately blocked illicit wallets.