Tether Faces Senate Scrutiny Over Alleged Iran-Linked Activities
A Senate subcommittee has released a preliminary report on Tether's (USDT) activities in Iran, alleging that the stablecoin is being used as a 'significant financial lifeline' for the country's shadow banking network. The report found that 84% of 846 sanctioned or seizure-targeted crypto wallets linked to Iran transacted exclusively or nearly exclusively in USDT.
The subcommittee, led by Democratic Senator Richard Blumenthal, reviewed blockchain records from June 2021 to August 2026 and found that 87% of the 757 wallets identified by Israel's National Bureau for Counter Terror Financing conducted more than 80% of their transaction value in USDT. The report also highlighted two Iran-linked wallets that held $344.2 million in USDT when they were designated as sanctioned assets.
Tether has disputed the characterization of its role, stating that it helped freeze nearly $550 million in Iran-linked USDT during 2026. However, Senator Blumenthal is asking Treasury and the Justice Department to examine Tether's sanctions and anti-money-laundering controls.