USDT, the stablecoin owned by Tether, is recognized as a "vital financial line" for Iran and a tool for financing affiliated organizations such as Hezbollah. This conclusion is presented in a report led by Senator Richard Blumenthal, a senior member of the U.S. Senate Permanent Subcommittee on Investigations.
Analysis of 846 Cryptocurrency Wallets
This report examines 846 cryptocurrency wallets under U.S. and Israeli sanctions related to Iran and shows that 84% of these wallets have engaged in transactions with USDT. These transactions have helped the Iranian government move money across borders and support its currency, particularly through the Central Bank of Iran.
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Senator Blumenthal emphasized in a statement that this report "shows how Tether and its main token have become a central component of Iran's shadow banking system" and called on the U.S. Department of the Treasury and the Department of Justice to investigate Tether.
The Role of Tether in Iran's Financial System
USDT is recognized as the largest dollar-backed stablecoin in the world. In response to this report, Tether stated that it is committed to cooperating with the U.S. government and supported the blocking of nearly $550 million in USDT related to Iran in 2026.
Paolo Ardoino, CEO of Tether, stated, "Tether has consistently shown that USD₮ is not a refuge for sanctioned actors, terrorist organizations, or criminal networks." These remarks come as the U.S. Department of the Treasury has intensified sanctions against the Islamic Republic following the start of the military campaign against Iran this year.
Last month, the U.S. government launched an "economic foreign" operation focused on cryptocurrency transactions. These actions reflect Washington's increasing efforts to limit Iran's financial resources related to its nuclear programs and military activities.
In this situation, analysts believe that Tether and USDT could serve as tools to circumvent sanctions and provide financial resources for the Iranian government and its affiliates. This issue has raised serious concerns among U.S. officials and their allies.
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