Tether, the issuer of the USDT stablecoin, revealed it assisted authorities in freezing approximately $550 million in USDT linked to Iran in 2026. This disclosure comes amidst growing scrutiny from Senate Democratic investigators who allege that USDT has become integral to Iran's shadow banking operations.
In a recent statement, Tether confirmed that it has collaborated with international law enforcement for several years, highlighting that over $130 million in USDT was frozen across four wallets this year alone. Notably, in April, Tether froze more than $344 million tied to the Central Bank of Iran.
Tether's CEO, Paolo Ardoino, asserted that the stablecoin is not a refuge for sanctioned individuals or criminal entities, emphasizing the company's commitment to transparency and cooperation with authorities. The statement follows a report from the Senate Permanent Subcommittee on Investigations, which indicates that a significant portion of crypto wallets sanctioned for ties to Iran primarily used USDT.
According to the findings, 84% of the 846 crypto wallets sanctioned for their connections to Iran had transacted almost exclusively in USDT. This prompted Senator Richard Blumenthal to urge the Treasury and Justice departments to investigate potential violations of sanctions.
Tether highlighted its ongoing collaboration with various global authorities, resulting in over $4.9 billion in frozen assets, including more than $2.4 billion linked to U.S. authorities. Ardoino reaffirmed Tether's commitment to assist in combating terrorism, sanctions evasion, and other serious financial crimes.