Tether says it helped freeze $550M in Iran-linked USDT this year
The disclosure came as Senate Democratic investigators alleged USDT had become a key part of Iran’s shadow banking network.
Stablecoin issuer Tether disclosed on Monday that it assisted authorities in freezing nearly $550 million in Iran-linked USDT during 2026. The company revealed that it had been actively collaborating with international law enforcement for years, emphasizing that USDT is not a refuge for sanctioned actors, terrorist organizations, or criminal networks. CEO Paolo Ardoino stated that Tether has consistently demonstrated the lack of misuse of USDT by such entities.
The disclosure comes as Senate Democratic investigators alleged that USDT had become a crucial component of Iran’s shadow banking network. In their report, the Senate Permanent Subcommittee on Investigations found that 84% of 846 crypto wallets sanctioned for ties to Iran had transacted almost exclusively or entirely in USDT. This finding prompted U.S. Senator Richard Blumenthal to call for an investigation into potential sanctions violations by the Treasury and Justice departments.
Tether's CEO, Paolo Ardoino, highlighted the company's cooperation with authorities worldwide, resulting in the freezing of over $4.9 billion in assets, including more than $2.4 billion connected to U.S. authorities. He reiterated Tether's commitment to working with law enforcement to trace, freeze, and recover assets, stating that they will continue to provide this capability to authorities combating terrorism, sanctions evasion, fraud, and other serious crimes.
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