Tether Accused of Enabling Iranian Sanctions Evasion with USDT

A Senate report claims Iran is using Tether's stablecoin USDT as a 'significant financial lifeline' within its shadow banking network.

The subcommittee, led by Sen. Richard Blumenthal, found that 84% of 846 sanctioned cryptocurrency wallets linked to Iran used USDT exclusively or almost exclusively for international payments and currency support.

The report alleges that Tether's failure to freeze illicit crypto wallets has allowed Iran to fund terrorist proxy organizations and buy military equipment, including drones.

Tether maintains it has frozen $550 million in USDT linked to Iran this year and claims public blockchains provide visibility into fund movements that cash cannot match.