Senate report says Tether's USDT fuels Iran and proxy groups
A Senate Democratic investigation found that Tether's USDT stablecoin is a major conduit for Iranian government funds and payments to proxy organisations such as Hezbollah.
A Senate Democratic probe, headed by Senator Richard Blumenthal, analyzed 846 crypto wallets tied to Iran that have been sanctioned by Israel and the United States. The investigation revealed that 84% of the transactions used Tether's USDT stablecoin, effectively serving as a financial lifeline for the Iranian government and its proxy networks, including Hezbollah. According to the report, USDT enables Tehran to bypass sanctions, move funds internationally and bolster its own currency through the Central Bank of Iran.
Tether responded that it is willing to work with U.S. authorities and supports the recent freezing of about $550 million in Iran-related USDT. The finding comes as the Treasury Department has stepped up pressure on Tehran, launching Operation Economic Outcast to target illicit crypto activity.
Why it matters
The use of a major stablecoin to evade sanctions raises concerns about crypto's role in financing hostile regimes and terrorist groups.
In this story
