Tether's USDT Stablecoin Accused of Aiding Iran's Sanctions Evasion
Tether's USDT stablecoin has become a crucial tool for Iran to fund its activities and evade US sanctions, according to a recent report by Senate Democrats. The report analyzed 846 crypto wallets sanctioned by Israel and the US in connection with Iran and found that 84% of them transacted in USDT.
The report's lead author, Senator Richard Blumenthal, stated that Tether has become central to Iran's shadow banking system, allowing the government to move money across its borders and support its currency. This is particularly significant given the US sanctions imposed on Iran, including through Operation Economic Outcast launched by the Treasury Department.
Tether CEO Paolo Ardoino responded to the report, stating that USD₮ has consistently demonstrated it's not a haven for sanctioned actors or terrorist organizations. The company also claimed to have supported the freezing of nearly $550 million in Iran-linked USDT in 2026.