Tether's USDT at Center of Iran's Shadow Banking System

A report from the US Senate Democrats has shed light on the significant role of Tether's USDT stablecoin in Iran's financial system. According to the report, 84% of 846 cryptocurrency wallets sanctioned by Israel and the US for their connection to Iran have used USDT.

The report, led by Senator Richard Blumenthal, found that USDT was used for various transactions, including helping the Iranian government move money across borders and supporting its currency amid US sanctions. This includes transactions through the Central Bank of Iran.

Tether has disputed this characterization, stating that it is committed to cooperating with the US government and has supported the freezing of nearly $550 million in Iran-linked USDT. Tether CEO Paolo Ardoino emphasized that USDT is not a haven for sanctioned actors or terrorist organizations.