Tether Accused of Facilitating Iran's Shadow Banking Network

A U.S. Senate Democratic report has accused Tether of playing a 'pervasive' role in Iran's shadow banking network, citing over $600 million in USDT transactions processed by sanctioned Iranian entities.

The report analyzed 847 digital wallets linked to Iran and its regional proxies, finding that 84% of them transacted exclusively or nearly exclusively in USDT. The funds were often laundered through unregulated exchanges and intermediaries.

Tether has responded by highlighting its efforts to freeze over $550 million in Iran-linked USDT transactions as U.S. sanctions expanded this year.

The report also questioned Tether's ties to the Trump administration, including a connection between the company's CEO and a former White House Crypto Council director who now leads Tether's U.S.-facing division.