Tether USDT Entangled in Iranian Funding and Proxy Activities

A Senate report led by Senator Richard Blumenthal of Connecticut has found that Tether's USDT stablecoin has become a significant financial lifeline for Iran and a tool for funding proxy organizations, including Hezbollah.

The report analyzed 846 crypto wallets sanctioned by Israel and the US in connection with Iran and found that 84% transacted in USDT. This allowed the Iranian government to move money across its borders and support its currency amid US sanctions, including through the Central Bank of Iran.

Tether's USDT is the world's largest dollar-backed stablecoin, and the report 'exposes how Tether and its flagship token have become central to Iran’s shadow banking system', Blumenthal said in a statement. He called for the Treasury and Justice Departments to investigate Tether.