Tether labeled as 'financial lifeline' for the Iranian regime by US Senate Democrats
2026.09.29 00:26:36
Democratic members of the U.S. Senate Permanent Subcommittee on Intelligence (under the Committee on Homeland Security and Governmental Affairs) released a report on September 28, accusing Tether’s stablecoin USDT of becoming a key funding channel for Iran’s shadow banking network, helping the Iranian government evade international sanctions. The report estimated that Iran processed roughly $20 billion in transactions via the relevant network last year, though it did not specify the exact amount involving USDT. It also alleged that Tether failed to freeze Iran-linked wallets in a timely manner—some freezing actions took weeks—and did not proactively block wallets suspected of illegal activity. The report noted that USDT has become an important financial lifeline for Iran’s shadow banking network. In response, Tether said the same day it had assisted in freezing nearly $550 million in Iran-related USDT, adding that it has maintained direct cooperation with law enforcement agencies in the U.S. and other countries to help identify and freeze illegal funds.
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