Tether claims $550 million in Iran freezes, but $35 million slipped past Senate
Democratic staff on a Senate subcommittee said delays in Tether blacklisting some Iran-linked USDT wallets allowed more than $34.6 million to move after an Israeli seizure notice. Their review covered 846 wallets targeted by US or Israeli authorities; 84% transacted predominantly in USDT. Sen. Richard Blumenthal referred the findings to Treasury and Justice for investigation, but they do not establish a legal violation or a new government case. Tether says it helped freeze about $550 million in Iran-linked USDT in 2026, including at least $474 million in two disclosed actions. The company says it acts on credible law-enforcement information, but its statement did not address the report’s wallet analysis or alleged delays. The findings highlight how issuer controls can freeze stablecoin funds while delays leave them movable.
