Senate uncovers Iran’s $500M Tether use; $550M frozen
6.7 Regulation A US Senate probe found Iran used Tether’s USDT to evade sanctions, amassing $500M. Tether froze $550M in Iran-linked USDT in 2026, supporting global enforcement.
A US Senate investigation has revealed that Iran has extensively used Tether’s USDT stablecoin to bypass international sanctions. The country’s central bank reportedly accumulated over $500 million in USDT, with the investigation tracing hundreds of millions through wallets tied to Iranian oil deals and entities linked to the Islamic Revolutionary Guard Corps. The report found that 87% of 846 sanctioned wallets transacted almost exclusively in USDT, making it a key part of Iran’s underground financial system. In response, Tether announced it had frozen approximately $550 million in USDT connected to Iran’s central bank and sanctioned networks in 2026, working with US and international law enforcement. These actions are part of Operation Economic Outcast, a US Treasury initiative targeting financial networks supporting Iran. Tether highlighted its cooperation with over 340 agencies in 67 countries, assisting in more than 2,800 investigations and helping freeze over $4.9 billion in assets globally. The case underscores the growing role of stablecoins in sanctions enforcement and financial oversight.
