Tether Under Fire as US Senator Calls for Investigation Over Iran Link
US authorities are expanding their investigation into the cryptocurrency system allegedly used by Iran to transfer funds, and Tether is now at the center of attention. US Senator Richard Blumenthal has called on the Treasury and Justice Department to investigate Tether over its alleged connection to Iran's use of $USDT.
The PSI report found that 84% of wallet accounts flagged or targeted for confiscation due to their connections to Iran made transactions exclusively or almost exclusively in $USDT. Blumenthal noted that 'Tether and its flagship token have become central to Iran's shadow banking system.'
Tether responded by stating that it has assisted in freezing nearly $550 million in $USDT associated with Iran in 2026.
The investigation is part of a wider campaign launched by the US against Iran, which includes Operation Economic Outcast, aimed at targeting nearly 60 entities linked to Iran. The Treasury Department has also designated digital assets as one of five sectors subject to sanctions.