U.S. Senate Report Alleges Tether Facilitates Iranian Shadow Banking

A 28-page report by the U.S. Senate Permanent Subcommittee on Investigations (PSI) alleges that Tether and its USDT stablecoin have become central to Iran's shadow banking system, enabling the evasion of sanctions. The report claims that 87% of 757 wallets linked to Iranian terror financing primarily traded USDT. Tether responded by stating it has frozen $550 million in USDT linked to Iran over the past year, emphasizing that it acts upon credible information from law enforcement rather than conducting independent investigations.