Tether Freezes $550M in Iran-Linked USDT as Senate Investigators Probe Stablecoin's Role
In 2026, Tether halted nearly $550 million in USDT associated with Iran, which included more than $344 million in April due to data from the U.S. Treasury Department's OFAC. The OFAC imposed sanctions on two addresses tied to Iran's central bank, the Islamic Revolutionary Guard Corps-Qods Force, and Hezbollah. Following the Treasury's designation, Tether also froze over $130 million in four TRON wallets in July. This information was revealed on September 28, after a Senate probe found that 84% of 846 cryptocurrency wallets targeted primarily used USDT. Senator Richard Blumenthal called for investigations into possible sanctions breaches. Tether has globally frozen assets exceeding $4.9 billion, with $2.4 billion related to U.S. authorities.
Key facts
- Tether froze nearly $550 million in Iran-linked USDT during 2026.
- In April, Tether froze more than $344 million across two addresses after receiving information from OFAC and U.S. law enforcement.
- In July, Tether froze more than $130 million across four TRON wallets after Treasury added those addresses to the same designation.
- The Senate Permanent Subcommittee on Investigations examined 846 cryptocurrency wallets and found that 84% had transacted exclusively or nearly exclusively in USDT.
- Investigators traced more than $600 million in USDT through the accounts of two sanctioned Iranian oil smugglers between 2021 and 2025.
- Senator Richard Blumenthal called on the Treasury and Justice departments to investigate potential sanctions violations.
- Tether CEO Paolo Ardoino said USDT is not a haven for sanctioned actors, terrorist organizations or criminal networks.
- Tether said its cooperation with authorities worldwide has helped freeze more than $4.9 billion in assets, including more than $2.4 billion connected to U.S. authorities.
Entities
Artists
- Paolo Ardoino
- Richard Blumenthal
- Babak Zanjani
Institutions
- Tether
- U.S. Treasury Department
- Office of Foreign Assets Control
- Senate Permanent Subcommittee on Investigations
- Islamic Revolutionary Guard Corps-Qods Force
- Hezbollah
- Houthis
- BitBank
- NFT Plazas
Locations
- Iran
- United States