On September 28, 2026, Democratic staff of a Senate subcommittee reported that delays in freezing some Iran-linked USDT wallets allowed more than $34.6 million to move after an Israeli seizure notice. The finding concerns 34 wallets identified in June 2023 that, according to the report, were not frozen until March 2024. It is not a court finding that Tether violated US law.
Tether said the same day that it had helped freeze approximately $550 million in USDT across wallets US authorities linked to Iran’s central bank and sanctions networks during 2026. Sen. Richard Blumenthal referred the staff findings to the Treasury and Justice departments and requested an investigation; the referrals do not establish a violation or show that either department has opened a new case. The report also found that 84% of 846 wallets selected for their identified links to Iran or regional groups transacted exclusively or nearly exclusively in USDT, a figure that does not measure illicit activity across all USDT transactions.
