Tether Faces Investigation Over Alleged Iran Ties
US Senator Richard Blumenthal is urging the Treasury and Justice Department to investigate Tether (USDT) over its alleged ties to Iran. On September 28, Blumenthal referred findings from a Senate Permanent Subcommittee on Investigations report that found 84% of flagged wallet accounts used USDT exclusively or almost exclusively in transactions linked to Iran.
The report also revealed that Cantor Fitzgerald holds an approximate 5% stake in Tether and has ties to Commerce Secretary Howard Lutnick's family. In response, Tether stated that it had assisted in freezing nearly $550 million in USDT associated with sanctioned entities in Iran in 2026.
The investigation is part of a broader campaign by the US against Iran, including Operation Economic Outcast launched on August 24, which targets nearly 60 entities linked to Iran. This development raises concerns that secondary sanctions may be imposed on exchanges, OTC brokers, and payment service providers supporting Iran's cryptocurrency industry.