USDT Accused of Facilitating Iranian Sanctions Evasion

Senate Democrats have accused Tether's USDT of being a key financial channel for Iran's sanctions-evasion network. According to the report, the Iranian government conducted around $2 billion in transactions in 2025, with some of these transactions likely involving USDT.

The Senate Democrats alleged that Tether repeatedly failed to block Iran-linked wallets and sometimes took weeks to freeze them after receiving requests from authorities. However, Tether's CEO Paolo Ardoino said the company remains in direct coordination with authorities as governments target sanctions evasion and terrorist financing.

Notably, the report also claimed that terrorist organizations, including Hamas, shifted towards USDT after previously using Bitcoin and other cryptocurrencies.