Tether pushed back against a U.S. Senate Democrats’ investigation into Iranian use of its USDT stablecoin, saying it had frozen nearly $550 million in Iran-linked USDT in 2026 at U.S. authorities’ request. The company said it was cooperating with law enforcement and complying with sanctions.
The Wall Street Journal reported on September 28 that the Senate investigation found USDT was a primary means of payment for the Iranian regime and a tool for funding proxy groups. Among more than 800 sanctioned crypto wallets reviewed, about 84% held USDT as their main or only asset; the reporting also said Iran’s Central Bank had accumulated at least $507 million in USDT.
