Senate Report Accuses Tether's USDT of Facilitating Illicit Transactions for Iran

A new report by Senate Democrats has accused Tether of being a key player in Iran's parallel banking system, citing nearly 550 million dollars frozen in USDT. The report found that 84% of sanctioned addresses linked to Iran operate almost exclusively in USDT.

The report, titled 'Tethered to Terrorism,' analyzed 846 sanctioned addresses linked to Iran and its proxies, with the majority using Tether's stablecoin for illicit transactions. It also noted a significant increase in crypto use to circumvent sanctions, jumping by 694% in 2025 for at least 2 billion illicit transactions.

Tether responded to the report by highlighting its record of freezing funds, claiming nearly 550 million dollars of USDT frozen in 2026. The company also emphasized its role in facilitating investigations and freezing illicit tokens, with over 2,800 cases facilitated in 67 countries and a total of 4.9 billion dollars frozen.