Tether USDT aids Iran funding, Senate report says

The Senate has released a report claiming Tether's USDT stablecoin has become a crucial financial lifeline for Iran and a tool for funding proxy groups, such as Hezbollah. Led by Senator Richard Blumenthal, the report examined 846 sanctioned crypto wallets linked to Iran and discovered that 84% of transactions were conducted in USDT.

This stablecoin, used to circumvent US sanctions, provided Iran's government with a means to move money across borders and support its currency through the Central Bank of Iran. The report exposes Tether's central role in Iran's shadow banking system, allowing the regime to fund various activities. Senator Blumenthal called for Treasury and Justice Department investigations into Tether.

Tether, the world's largest dollar-backed stablecoin, stated it is committed to cooperating with US authorities. In response to the US military campaign against Iran this year, the Treasury Department has intensified sanctions against the Islamic Republic, launching Operation Economic Outcast last month, which focused on crypto transactions.