Tether at Center of US-Iran Crypto Crackdown: Senator Calls for Further Investigation

The US government is expanding its investigation into Iran's cryptocurrency activities, focusing on Tether (USDT) as a key player in the country's alleged shadow banking system. Senator Richard Blumenthal has called on the Treasury and Justice Department to look further into Tether, citing concerns that the stablecoin has become central to Iran's illicit financial operations.

Tether has acknowledged freezing approximately $550 million in USDT related to Iran's central bank and other sanctioned entities in 2026. The company claims to cooperate with over 340 law enforcement agencies in 67 countries.

The investigation is part of a broader campaign against Iran, with the Treasury Department launching Operation Economic Outcast in August. This initiative aims to target nearly 60 entities linked to Iran, including digital assets, and has raised concerns about secondary sanctions being imposed on exchanges, OTC brokers, payment service providers, and other entities supporting Iran's cryptocurrency industry.