Senate Scrutinizes Tether's USDT Over Iran Crypto Transactions

A Senate investigation has turned its attention to Tether's USDT stablecoin over concerns it may be facilitating illicit transactions with Iran. The probe, led by Senator Richard Blumenthal, analyzed 846 sanctioned crypto wallets associated with Iran and found that USDT was involved in 84% of these transactions.

Tether disputes the characterization, claiming that its freeze practices have been effective in blocking $550 million worth of USDT linked to Iran since 2026. The company's CEO, Paolo Ardoino, asserts that Tether has been working against sanctioned actors and illicit activity from the outset.

The Senate report highlights discrepancies between Tether's assertions and actual practice, suggesting that the firm did not always freeze wallets designated as sanctioned before 2024. There is no evidence to support Tether's claim of actively freezing associated with illicit Iranian finance.