Senate Democrats Accuse Tether of Being a ‘Lifeline’ for Iran

Tether lifeline Iran — U.S. Senate Democrats have published a report accusing the Tether stablecoin of serving as a key financial tool for the Iranian government to evade international sanctions.

The report, from Democrats on the Senate’s Permanent Subcommittee on Intelligence, alleges that USDT has become a “significant financial lifeline” within Iran’s shadow banking network. It claims Tether has “repeatedly failed” to block Iran-connected wallets and that its actions sometimes take weeks or are insufficient.

The document states that prior to 2024, Tether did not comprehensively freeze wallets designated by counter-terrorism agencies, creating an absence of deterrence that invited abuse. It alleges terrorist groups like Hamas shifted to promoting USDT over other cryptocurrencies. The report estimates the Iranian government made an estimated $2 billion in transactions last year.

In a blog post, Tether responded that it has supported nearly $550 million in Iran-linked freezes at the behest of U.S. authorities. The Senate report frames Iran’s use of USDT as a broader indictment of cryptocurrencies, arguing they undermine U.S. efforts to prevent regional terrorism.