Tether faces Senate scrutiny over Iran transactions
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- A Senate Democratic staff report alleges Tether’s USDT has become a primary payment system for Iran.
- Investigators analysed 846 wallets, with 84% using USDT exclusively or nearly exclusively.
- Tether says it supported nearly $550 million in Iran-linked freezes during 2026.
Tether’s USDT stablecoin has become a primary payment system for Iran, a Senate report alleges.
Investigators analysed 846 wallets linked to Iran and regional proxies over more than five years.
“USDT has become a significant financial lifeline within Iran’s shadow banking network,” the Senate Permanent Subcommittee on Investigations report said.
The analysis found 84% of those wallets used USDT exclusively or nearly exclusively.
Two sanctioned Iranian oil smugglers moved more than $603 million in USDT from 2021 to 2025.
The report also linked USDT transactions to Hizballah, the Houthis and Iranian financial institutions.
Tether said it had supported nearly $550 million in Iran-linked freezes during 2026.
The report calls for Treasury and Justice investigations into Tether’s sanctions compliance practices.
