Senate Report Alleges Iran Uses Tether to Evade Sanctions and Fund Proxies

A report from the Senate Permanent Subcommittee on Investigations claims that Iran is utilizing Tether’s USDT to bypass U.S. sanctions and fund groups such as Hezbollah. The probe, led by Sen. Richard Blumenthal, found that 84% of 846 sanctioned wallets linked to Iran traded primarily in USDT. While Tether has cooperated with law enforcement to freeze some accounts, the report highlights the stablecoin's role in Iran's shadow banking system. Data from TRM Labs indicates that USDT's share of volume in Iran-attributed wallets has declined recently.