Tether Defends Compliance Efforts Amid US Senate Probe into Iran-Linked USDT Usage

A report by the US Senate Permanent Subcommittee on Investigations found that 84% of 846 crypto wallets linked to Iranian-sanctioned entities used Tether's USDT exclusively or nearly exclusively. While investigators argue that USDT has become a key tool for Iran's cross-border illicit finance, Tether countered by stating it has frozen approximately $550 million in USDT linked to Iranian networks in 2026 alone. The dispute centers on the speed and proactivity of Tether's freezing actions, rather than the technical ability to do so. Tether maintains that its cooperation with US law enforcement proves it is not a safe haven for illicit activity, and the incident has not impacted USDT's market peg or liquidity.