Tether's USDT Accused of Aiding Iran Funding

A Senate report has found that Tether's USDT stablecoin has become a significant financial lifeline for Iran, helping the country move money across its borders and support its currency amid US sanctions.

The report, led by Senator Richard Blumenthal of Connecticut, analyzed 846 crypto wallets sanctioned by Israel and the US in connection with Iran. It found that 84% of these wallets transacted in USDT, including to help the Iranian government fund proxy organizations such as Hezbollah.

Tether's USDT is the world's largest dollar-backed stablecoin, and its use has allowed the Iranian government to fund a range of activities despite US sanctions. The report called for an investigation into Tether by the Treasury and Justice Departments, with Senator Blumenthal stating that the company had become central to Iran's shadow banking system.

Tether CEO Paolo Ardoino disputed these claims, stating that the company had consistently demonstrated that USDT was not a haven for sanctioned actors or terrorist organizations. The company also supported the freezing of nearly $550 million in Iran-linked USDT in 2026.