Blumenthal Seeks US Probe of Tether Over Iran Sanctions Evasion

Sen. Richard Blumenthal on Monday referred a Senate investigation into Tether’s USDT to the Treasury Department and Justice Department, alleging the stablecoin plays a major role in Iran-linked sanctions-evasion networks.

The investigation examined blockchain activity involving 846 wallets sanctioned or targeted for seizure because of links to Iran and regional proxies. It found that 84% of the wallets transacted exclusively or nearly exclusively in Tether’s dollar-pegged stablecoin, USDT.

Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, requested reviews of Tether’s anti-money-laundering and sanctions compliance. The findings do not establish that every transaction was illegal or that Tether knowingly facilitated sanctions evasion.

Tether said it helped freeze approximately $550 million in Iran-linked USDT during 2026, including more than $344 million across two addresses in April and more than $130 million across four wallets in July.

“Tether has consistently demonstrated that USD₮ is not a haven for sanctioned actors, terrorist organizations or criminal networks,” Tether CEO Paolo Ardoino said.

The investigation follows a June inquiry into Tether’s obligations under US sanctions rules and its handling of wallets linked to Iranian exchanges designated by the Treasury Department’s Office of Foreign Assets Control.