USDT Stablecoin Accused of Aiding Iran's Sanctions-Evasive Financial System

A Senate report has revealed that Tether's USDT stablecoin has become a significant financial lifeline for Iran, helping the country move money across its borders and support its currency amid US sanctions.

The report, led by Senator Richard Blumenthal of Connecticut, analyzed 846 crypto wallets sanctioned by Israel and the US in connection with Iran. It found that 84% of these transactions were in USDT, with the majority being used to help the Iranian government move money across its borders and support its currency.

Tether's USDT is the world's largest dollar-backed stablecoin, and the company has said it supports the freezing of nearly $550 million in Iran-linked USDT. However, Senator Blumenthal has called for further investigation into Tether, saying that the report exposes how Tether and its flagship token have become central to Iran's shadow banking system.