Report: 'Rampant' use by Iranian regime of Tether crypto to bust US sanctions
The Iran has used digital dollars issued by Tether to circumvent US sanctions, move funds through the global financial system and provide “significant financial lifeline” for regime's shadow banking network., according to a report released Monday by Senate Democrats. Tether, one of the most popular cryptocurrencies, issues the dollar-pegged stablecoin USDT. Investigators analysed 846 crypto…
A Senate Democratic report has found that the Iranian regime has extensively used Tether's cryptocurrency to evade US sanctions and bolster its financial infrastructure. Tether, a widely-used stablecoin, issues the dollar-pegged USDT. After analyzing 846 sanctioned cryptocurrency wallets tied to Iran and its proxies, researchers discovered that 84% primarily transacted in USDT.
Senator Richard Blumenthal, the subcommittee's chief Democrat, warned that Tether has exposed "the whereabouts of your money" as the US targets the country's offshore wealth. The investigation, conducted by the Senate Permanent Subcommittee on Investigations, revealed that Tether's stablecoin has become a vital payment method for the Iranian regime and a means to fund terrorist proxy organizations like Hezbollah.
Tether has reportedly failed to consistently freeze illicit wallets, particularly before 2024. Tether maintains that actions involving USDT have resulted in about $550 million being frozen in 2026 in wallets identified as linked to Iran's central bank and sanctions networks. The US Treasury has also targeted 10 individuals for transferring cash to Hezbollah, urging global whistleblowers to expose Iran's financial lifelines.
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