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.