U.S. Senate Report: Iranian Shadow Banking Network Heavily Relies on USDT

A U.S. Senate report reveals that Tether's USDT is the primary cryptocurrency used by an Iranian shadow banking network to facilitate funds for Iran and regional proxy groups. Analysis of 846 sanctioned wallets linked to Iran, Hamas, Hezbollah, and the Houthis showed that 84% transacted almost exclusively in USDT. The investigation identified nearly $50 million in USDT flowing through Central Bank of Iran wallets in April and May 2025, with funds subsequently moved to exchanges like Nobitex and Ramzinex. Additionally, three wallets linked to Modex Exchange Company received nearly $600 million in USDT.