Iran's Islamic regime using Tether cryptocurrency as 'financial lifeline,' US Senate report charges

Jerusalem Post/Middle East/Iran NewsThe report ⁠found that 84% of crypto wallets that have been sanctioned by the US transacted in USDT, such as to help ​the Iranian government move money across its borders and support ​its currency.Follow us on GoogleTether cryptocurrency logo displayed on a phone screen and representation of cryptocurrency are seen in this illustration photo taken in Krakow, Poland on November 2, 2021.(photo credit: Jakub Porzycki/NurPhoto via Getty Images)SEPTEMBER 29, 2026 13:53Updated: SEPTEMBER 29, 2026 14:42Tether's stablecoin has become a "significant financial lifeline" for Iran and a tool for funding proxy ​organizations, including Hezbollah, according to a report led by ‌Senate Democrats, published on Monday.Led by Senator Richard Blumenthal of Connecticut, the top Democrat on the Senate Permanent Subcommittee on Investigations, the report ​analyzed 846 crypto wallets that have been sanctioned by ​Israel and the US in connection with Iran.It ⁠found that 84% transacted in USDT, such as to help ​the Iranian government move money across its borders and support ​its currency amid US sanctions, including through the Central Bank of Iran.The report "exposes how Tether and its flagship token have become central to Iran’s ​shadow banking system," allowing the Iranian government to fund ​a range of activities, Blumenthal said in a statement. He called for ‌the ⁠Treasury and Justice Departments to investigate Tether.What is Tether?Tether's USDT is the world's largest dollar-backed stablecoin. In a statement, the company said it was committed to cooperating with the US government, and said ​it supported ​the freezing of ⁠nearly $550 million in Iran-linked USDT in 2026.Signage for Bitcoin and Tether cryptocurrencies in Hong Kong, China, on Wednesday, Nov. 26, 2025. (credit: Lam Yik/Bloomberg via Getty Images via Getty Images)"Tether has consistently demonstrated that USDT is not a ​haven for sanctioned actors, terrorist organizations or criminal ​networks," ⁠Tether CEO Paolo Ardoino said in the statement.Following the start of the US military campaign against Iran this year, the Treasury Department has stepped ⁠up ​sanctions against the Islamic Republic. Last ​month, it launched Operation Economic Outcast, which included a focus on crypto transactions.Follow us on Google