Tether's USDT Fuels Iran-Linked Sanctions Evasion, Senate Investigation Reveals
A recent Senate investigation has shed light on the extensive use of Tether's USDT stablecoin by Iran-linked wallets, which transacted exclusively or nearly exclusively in USDT. The report found that 84% of 846 sanctioned or seizure-targeted crypto wallets linked to Iran and regional groups used USDT for their transactions.
The investigation, conducted by the Senate Permanent Subcommittee on Investigations' Democratic minority staff, reviewed blockchain records from June 2021 through August 2026 and identified several instances where Tether's USDT was used to bypass US sanctions. The report also highlighted two sanctioned Iranian nationals who received $603 million in USDT between 2021 and 2025.
Tether disputed the report's portrayal of its compliance record, stating that USDT is not a haven for sanctioned actors or criminal networks. However, the company acknowledged supporting nearly $550 million in Iran-linked asset freezes during 2026 enforcement actions.