Senate Report Exposes Tether's Role in Iran's Shadow Banking System
A Senate report has shed light on the significant role of Tether's USDT stablecoin in supporting Iran's economy and funding proxy groups. Led by Senator Richard Blumenthal, the report analyzed 846 crypto wallets linked to Iran, finding that 84% had transacted in USDT.
The report suggests that USDT has become a crucial tool for the Iranian government to move money across borders and support its currency under U.S. sanctions. The Treasury Department's Operation Economic Outcast, launched last month, has also focused on crypto transactions related to Iran.
Tether has pushed back against the findings, stating it is committed to cooperating with the U.S. government and pointing to its support for freezing nearly $550 million in Iran-linked USDT in 2026. However, Senator Blumenthal has called for a federal investigation into Tether, citing its central role in Iran's shadow banking system.