Senate Report Says Iran Used USDT to Evade Sanctions
The report examined 846 sanctioned Iran-linked wallets, while Tether said it helped freeze about $550 million in related USDT this year.
A Sept. 28 report from Democratic members of the Senate Permanent Subcommittee on Investigations said Iran used Tether’s USDT to move value around U.S. sanctions, putting pressure on the largest stablecoin issuer.
The report examined 846 sanctioned wallets linked to Iran and found that 84% had used USDT. It also criticized Tether for not freezing some wallets quickly enough.
Tether said it has helped U.S. law enforcement and sanctions authorities freeze about $550 million in USDT linked to Iran’s central bank and related sanctions-evasion activity this year.
USDT is a dollar-linked stablecoin designed to maintain a value of $1. Its broad liquidity and acceptance make it useful for moving funds outside traditional banking channels, while Tether’s centralized control allows the company to freeze specific wallet addresses.
The report adds to political and compliance pressure on stablecoin issuers as U.S. lawmakers examine how digital assets are used to bypass sanctions.
