GoKawiilSenate report: Iran uses Tether's USDT to dodge sanctions, fund proxies
A Senate Permanent Subcommittee on Investigations report led by Sen. Richard Blumenthal alleges Iran relies on Tether's USDT stablecoin as a key part of a 'shadow banking network' to bypass sanctions and finance terrorist proxies and military equipment purchases. The subcommittee examined 846 sanctioned crypto wallets tied to Iran and regional proxies, finding 84 percent used USDT almost exclusively, and it accuses Tether of inconsistently freezing flagged wallets before 2024. Tether responded that it has frozen nearly $550 million in USDT linked to Iran this year and denies USDT is a haven for sanctioned or criminal actors.
GoKawiil's interpretation of the reporting above, not reported fact.
Blumenthal's call for the Justice and Treasury departments to investigate Tether suggests potential regulatory or legal action against the stablecoin issuer, which could affect its operations and reputation in the US. The dispute highlights broader tensions between crypto's borderless payment appeal and government efforts to enforce sanctions, and may intensify scrutiny of stablecoins' role in illicit finance more generally.
- A Senate report says 84% of 846 sanctioned crypto wallets linked to Iran used USDT almost exclusively.
- Sen. Blumenthal wants the Justice and Treasury departments to investigate Tether over possible sanctions violations.
- Tether says it has frozen nearly $550 million in USDT tied to Iran this year and disputes being a haven for illicit actors.
Source: engadget.com — Kris Holt, 2026-09-29
Published there as: “Senate report claims Iran is using Tether's stablecoin to evade sanctions”
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