Tether's USDT Accused of Facilitating Sanctions Evasion

Tether's USDT stablecoin has been flagged as a 'superhighway' for sanctions evasion, according to Senator Richard Blumenthal. The accusation stems from Tether freezing approximately $550 million in USDT tied to Iran's Central Bank and sanctions networks during 2026.

Blumenthal made the comments after reviewing actions coordinated by Tether, which resulted in the freezing of these funds. This move is part of a larger effort to combat money laundering and terrorist financing.

Tether has been expanding its self-custodial financial products across Africa and the Gulf Cooperation Council using its Wallet Development Kit (WDK), including USD₮. However, this development raises concerns about the potential for misuse of USDT in circumventing sanctions.