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

Tether, the issuer of the popular stablecoin USDT, has announced it helped freeze nearly $550 million in Iran-linked funds during 2024. The company claims this includes over $344 million frozen in April tied to the Central Bank of Iran.

This action comes amid renewed scrutiny from U.S. lawmakers, with Senate Democratic investigators releasing a report alleging USDT has become a prominent route for Iran to evade sanctions. According to the Senate findings, 84% of 846 sanctioned wallets tied to Iran transacted mostly in USDT.

Tether maintains that USDT is not used as a 'haven' for sanctioned actors, terrorist groups, or criminal networks and points to prior cooperation with U.S. agencies. The company's CEO Paolo Ardoino stated that law enforcement cooperation has been repeatedly used to trace, freeze, and recover assets.

Tether claims it has worked with international law enforcement 'for years' and has supported the freezing of more than $4.9 billion in assets, including over $2.4 billion connected to U.S. authorities. The company plans to continue making its capabilities available for tracing and recovering assets.