Turmoil in Venezuela and Iran has renewed focus on how dollar-backed stablecoins serve both ordinary citizens and sanctioned entities.
In Iran, protests, inflation and a collapsing rial have driven widespread use of Tron-based Tether as a hedge against economic instability.
Authorities in Iran capped stablecoin holdings and purchases in 2025 after hacks and multiple Tether blacklists disrupted adoption.
A TRM Labs report said Iran’s Revolutionary Guard allegedly moved more than $1 billion in stablecoins through front companies.
In practice, they operate as a single enterprise embedded within a broader Iranian sanctions evasion ecosystem.
TRM Labs said.
Venezuelans have also turned to Tether as trust in banks collapsed and the bolivar lost value.
You can use tether basically for anything.
Mauricio Di Bartolomeo said.
Venezuela’s state oil firm is reported to accept most of its oil revenue in USDT to bypass sanctions.
Tether has cooperated with US authorities to blacklist wallets tied to illicit activity.
AMLBot data showed Tether froze billions in funds between 2023 and 2025, highlighting the centralised control behind stablecoins.