Tether's USDT Stablecoin Used by Iranian Networks to Evade Trade Rules

A Senate investigation has found that Iranian money networks heavily rely on Tether's USDT stablecoin to evade trade rules. According to the report, 84% of over 800 sanctioned Iran-linked crypto wallets use USDT either mostly or completely.

The investigation was led by Senator Richard Blumenthal, who sent a letter to Tether asking if the firm ever refused law enforcement requests to block illegal wallets.

Tether responded with a statement that it helped freeze about $550 million in Iran-linked tokens during 2026. The company pointed out that its system allows for remote freezing of user wallets and blocking of funds, citing two large wallet freezes totaling $474 million as examples.