US Senator Blumenthal Calls Tether's USDT a 'Superhighway' for Iranian Sanctions Evasion
A Senate staff report says 84% of 846 cryptocurrency wallets sanctioned or targeted for seizure over links to Iran and its regional proxies transacted exclusively or almost exclusively in Tether’s USDT stablecoin. The figure is stronger for wallets identified by Israel’s counter-terror financing bureau than for those designated by OFAC. The report also says two sanctioned Iranian oil smugglers moved more than $603 million in USDT through a network tied to Hizballah, the Houthis, and Iranian financial institutions, with possible use for drone and military procurement. It argues Tether did not consistently freeze designated wallets before 2024 and that some sanctioned funds kept moving after designation. The report urges Treasury and Justice Department investigations into Tether’s compliance. Tether responded that it has frozen large amounts linked to Iran and has cooperated with law enforcement globally.
