Tether Accused of Facilitating $2 Billion in Iranian Transactions
A new Senate Democrats report claims that Tether's USDT stablecoin has become a primary tool for Iranian sanctions evasion, handling an estimated $2 billion in transactions last year. The report argues that Tether failed to proactively and consistently freeze illicit wallets linked to Iran before 2024.
According to the report, Iran's use of USDT is part of its broader cryptocurrency-based shadow banking network, which involves various Iranian interests. The network uses USDT as a significant financial lifeline within it. The report claims that Tether has repeatedly failed to block wallets linked to Iran, and when freezes do occur, they can take weeks.
The report links Iran's use of USDT to wider concerns about digital assets and sanctions enforcement. It says the lack of deterrence encouraged abuse and alleges that groups including Hamas shifted from using Bitcoin to promoting USDT.