US Senate report calls USDT a financial pillar of Iran — Jerusalem Post

In the United States, a report prepared by Senate Democrats described Tether’s USDT stablecoin as a significant financial pillar for Iran and a tool for financing proxy organizations, including Hezbollah. This was reported by the Jerusalem Post.

Analysis of sanctioned crypto wallets

The report was led by Connecticut Senator Richard Blumenthal, the leading Democrat on the Senate Permanent Subcommittee on Investigations. The authors analyzed 846 crypto wallets sanctioned by the United States and Israel in connection with Iran.

The report says that 84% of these wallets conducted transactions in USDT. According to the report, the token was used, among other things, to move funds across borders by the Iranian government and to support the national currency under US sanctions, including through the Central Bank of Iran.

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Tether’s response

Blumenthal said that Tether and its flagship token had become a central part of Iran’s shadow banking system, which, he said, enables the country’s government to finance various types of activity. He called on the U.S. Treasury Department and the Department of Justice to investigate Tether’s operations.

USDT is the world’s largest stablecoin backed by the U.S. dollar. Tether said it was ready to cooperate with U.S. authorities and reported that it had supported the freezing of nearly 550 million USDT linked to Iran in 2026. The company’s CEO, Paolo Ardoino, said that USDT is not a haven for sanctioned individuals, terrorist organizations, or criminal networks.

According to the Jerusalem Post, after the start of the U.S. military campaign against Iran this year, the U.S. Treasury Department increased sanctions pressure on the Islamic Republic. Last month, the department launched Operation Economic Outcast, which also focused on cryptocurrency transactions.