Tether’s USDT Alleged Role in Iran’s Shadow Banking Network
- A Senate report examined 846 sanctioned crypto addresses linked to Iran, highlighting Tether’s USDT as a key player.
- The report claims that USDT is central to networks connecting Iranian oil proceeds with groups like Hezbollah and Hamas.
- Tether countered these allegations by stating it has frozen approximately $550 million in Iran-linked USDT during the year alone.
- USDC, a stablecoin issued by Circle, was found to be minimally involved compared to USDT.
- The subcommittee noted that other cryptocurrencies like Bitcoin and Ethereum are also used by Iran-based groups.
The Senate report highlights concerns over Tether’s role in facilitating illicit financial activities linked to Iran, while Tether defends its actions by citing significant asset freezes. The focus on USDT raises questions about the effectiveness of stablecoin issuers in policing illicit activities.
Tether’s CEO rejected the report’s premise, asserting that USDT is not a safe haven for sanctioned actors and emphasizing their cooperation with law enforcement efforts against illicit finance flows. (Source)
