USDT Linked to Iran's Sanctions-Evasion Infrastructure, Senate Report Reveals

A Senate report has linked Tether's USDT stablecoin to Iran's shadow banking system, revealing that the cryptocurrency is being used to evade sanctions. The report found that 84% of assessed sanctioned crypto wallets linked to Iran transacted primarily in USDT.

Among these wallets, 87% were connected to terrorism financing. Iran's Central Bank has accumulated at least $507 million in USDT, giving the nation access to dollar-denominated liquidity without using traditional banking systems.

The report also identified connections between Iranian cryptocurrency transactions and the Lebanese militant group Hezbollah. The subcommittee has referred its findings to the Treasury Department and the Justice Department for further investigation.