USDT Dominates Iran Wallets
Senate Investigation Reveals Tether's USDT Dominates Iran-Linked Wallets and Sanctions Evasion
Anonymous
A U.S. Senate investigation found that about 84% of 846 Iran-linked wallets sanctioned by U.S. and Israeli authorities used Tether’s USDT for all or most transactions, raising concerns that the stablecoin helps Iran evade sanctions and fund proxy networks. Investigators said USDT’s dollar peg and ease of transfer—particularly on the Tron blockchain—can facilitate payments outside traditional banking channels, and shared findings with federal authorities. The Justice Department has separately sought forfeiture of about $61.2 million in USDT linked to 10 Tron addresses; Tether had frozen the funds before the case was filed. Tether says it cooperates with law enforcement and reports freezing nearly $550 million in Iran-linked USDT this year. The findings do not establish that Tether knowingly enabled sanctions evasion, but are likely to intensify calls for stronger screening by stablecoin issuers and crypto platforms.
Key Points
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Senator Richard Blumenthal said USDT had “become central to Iran’s shadow banking system,” and argued that it helped the Iranian government support proxy groups and pursue drone and missile programs.
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The investigation examined Iranian crypto exchanges including Nobitex, Wallex, Bitpin and Ramzinex. A separate account of the findings said Iran’s Central Bank had accumulated at least $507 million in USDT.
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The Senate investigation criticized Tether for not freezing sanctioned wallets quickly enough, according to the report summarized by Bloomingbit.
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Binance was also reportedly under Justice Department investigation over possible Iran sanctions violations; the exchange’s co-CEO Richard Teng had publicly distanced Binance from a related civil forfeiture case.
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