Tether Faces Scrutiny Over Iran-Linked Wallets

Democratic investigators on a Senate subcommittee have released a preliminary report alleging that Tether, a stablecoin issuer, allowed tens of millions of dollars to move through wallets associated with Iran, despite receiving information about the links from US authorities.

The report analyzed 846 crypto wallets that had been sanctioned or targeted for seizure due to their associations with Iran and regional groups. It found that 84% of these wallets transacted exclusively or nearly exclusively in Tether's stablecoin, USDT.

Tether responded by saying it helped freeze approximately $550 million in USDT across wallets connected to Iran's central bank and Iranian sanctions networks during 2026.