USDT at Center of Alleged Iranian Shadow Banking Network
A Senate investigation into Iran's financial networks has implicated Tether's USDT stablecoin in terrorism financing and sanctions evasion.
The report, led by Senator Richard Blumenthal, examined blockchain activity from 846 crypto wallets tied to Iranian entities. It found that 87% of 757 wallets linked to Iranian terrorism financing used USDT as their main token.
Tether disputes the report's central claim, saying it helped freeze $550 million in USDT linked to Iran over the past year. The company argues that public blockchains give authorities visibility into fund movements and allow Tether to act when law enforcement provides credible information.
The report also questions whether Tether's relationships with the Trump administration led to lenient treatment in enforcing anti-money-laundering rules. Blumenthal asked federal agencies to investigate possible sanctions and banking law violations connected to Tether's role in Iranian finance.