Tether Freezes $550M in Iran-Linked USDT Amid Senate Investigation

Tether has announced that it helped freeze nearly $550 million in USDT tied to Iran's central bank and Iranian sanctions networks so far this year. The company made this announcement on Monday, just one day after a Senate report accused USDT of being the backbone of Iran's shadow banking system.

According to Tether, the frozen funds include more than $344 million that was frozen in April, following a Treasury expansion of sanctions against Iran's central bank. The company also pointed out its longer track record of cooperation with law enforcement, which has led to more than $4.9 billion in frozen assets worldwide.

Tether CEO Paolo Ardoino pushed back against the Senate report, saying that USDT is not a safe haven for sanctioned actors or criminal networks. He noted that the company has consistently worked with authorities to trace and freeze assets tied to sanctions evasion.

The announcement comes as part of a broader campaign by the Treasury to target Iran's financial networks, including Operation Economic Outcast launched in August. The US government is also reportedly examining Binance's handling of Iran-linked trading and has filed a civil forfeiture case to seize $61 million in allegedly illicit USDT.