Crypto
USDT Entangled in Iran's Shadow Banking Network, Senate Report Reveals
A U.S. Senate report has revealed that Tether's USDT stablecoin is being used extensively in Iran's shadow banking network, despite U.S. sanctions.
The report analyzed 846 cryptocurrency wallets linked to Iran and found that 84% of them transacted exclusively or almost exclusively in USDT.
The Senate Permanent Subcommittee on Investigations, led by Senator Richard Blumenthal, criticized Tether for not consistently freezing sanctioned wallets until 2024, allowing illicit activity to continue.
Tether has disputed the characterization, citing nearly $550 million in frozen assets across wallets identified as connected to Iran's Central Bank and sanctions networks.