Tether Freezes $550M in Iran-Linked USDT Amid Sanctions Concerns

Tether, the issuer of the USDT stablecoin, has been working closely with international law enforcement to freeze assets linked to sanctioned actors. According to a statement from Tether, in 2026 alone, it helped authorities freeze nearly $550 million in Iran-linked USDT.

Of this total, more than $344 million was frozen in April due to ties to the Central Bank of Iran. Additionally, over $130 million was frozen across four wallets earlier this year.

Tether's CEO, Paolo Ardoino, emphasized that the company has consistently demonstrated USDT is not a haven for sanctioned actors or criminal networks. He noted that Tether has cooperated with authorities globally, resulting in more than $4.9 billion in assets being frozen, including over $2.4 billion connected to US authorities.

A Senate Democrat's report alleged that 84% of 846 crypto wallets sanctioned over ties to Iran had transacted exclusively or nearly exclusively in USDT. This led Senator Richard Blumenthal to call for an investigation into potential sanctions violations.