Tether Pushes Back Against Senate Accusations of Sanctions Evasion via USDT

A Senate Democratic report has accused the USDT stablecoin of being used to evade American economic sanctions against Iran. The report claims that USDT serves as a primary mechanism for Iranian sanctions circumvention, with approximately $2 billion in transactions facilitated through unofficial banking channels during the previous year.

Tether has responded by stating that it has assisted in freezing nearly $550 million in Iran-associated USDT throughout 2026. The company reports that 84% of 846 sanctioned cryptocurrency wallets connected to Iran dealt predominantly in USDT, with most transactions taking place through this stablecoin.

The Senate report demands that the Treasury and Justice Department launch investigations into potential sanctions violations involving the stablecoin. Tether's CEO, Paolo Ardoino, has rejected characterizations of USDT as a sanctuary for sanctioned entities, emphasizing the company's multi-year collaboration with law enforcement agencies to identify and halt illegal activities.