US Senate Report Links USDT to Iran's Shadow Banking System
A report by the U.S. Senate's Democratic minority has linked the stablecoin USDT to Iran's shadow banking system, raising concerns about its potential use for illicit activities.
The report, titled 'Tethered to Terrorism,' analyzed transactions from 846 wallets linked to Iran and its regional networks between June 2021 and August 2026. It found that 84% of these addresses conducted transactions exclusively or almost exclusively in USDT.
The report's authors estimate that hundreds of millions of dollars in USDT were moved through Iranian exchanges, including nearly $600 million to Modex Exchange Company over several months. Two sanctioned Iranian intermediaries also moved $603 million in USDT through their network from 2021 to 2025.
Senator Richard Blumenthal has urged the U.S. Treasury and Justice Department to investigate Tether for potential violations of banking and sanctions laws, citing concerns about its ties to Cantor Fitzgerald and former White House executive director Bo Hines.