Tether Denies Haven Status for Sanctioned Entities Amid $550M Freeze

Tether, a major stablecoin issuer, claims it has helped authorities freeze nearly $550 million worth of its USDT tied to Iran-linked activity during 2026. This move comes as a Democratic-led U.S. Senate investigation urged federal agencies to examine potential sanctions violations involving the stablecoin.

According to Tether's statement, the company has worked with international law enforcement for years to identify and freeze illicit funds. As a result of this cooperation, more than $4.9 billion in assets have been frozen globally.

The Senate investigation alleges that USDT is frequently used by sanctioned entities, particularly those linked to Iran, to evade sanctions. The report found that 84% of 846 crypto wallets sanctioned for ties to Iran had transacted exclusively or nearly exclusively in USDT.