Tether says it helped freeze Iran-linked USDT as U.S. lawmakers press sanctions scrutiny

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Tether freezes Iran-linked USDT

Highlights

Tether froze over $130 million in USDT across four wallets in 2026 and more than $344 million linked to the Central Bank of Iran in April.
Tether CEO Paolo Ardoino stated that the company has cooperated with global authorities to freeze over $4.9 billion in assets, with $2.4 billion related to U.S. agencies.
A Senate report alleges 84% of 846 Iran-sanctioned crypto wallets used USDT, prompting Senator Blumenthal to urge Treasury and Justice Department probes, escalating regulatory scrutiny on stablecoins.

Tether details freezes and law enforcement cooperation

According to Cointelegraph, Tether said in a statement on Monday that it has worked closely with international law enforcement for years, and that in 2026 alone it froze more than $130 million in USDT across four wallets. The company also said it froze more than $344 million in April that was linked to the Central Bank of Iran.

Tether Chief Executive Paolo Ardoino said the company has consistently shown that USDT is not a haven for sanctioned actors, terrorist organizations or criminal networks. He added that Tether's cooperation with authorities globally has resulted in more than $4.9 billion in assets being frozen, including more than $2.4 billion connected to U.S. authorities.

Ardoino said the public record shows the U.S. Department of Justice, FBI, Secret Service, HSI, OFAC and authorities in other jurisdictions have repeatedly worked with Tether to trace, freeze and recover assets. He said the company will continue making that capability available to agencies targeting terrorism, sanctions evasion, fraud and other serious crimes.

Senate findings add pressure on stablecoin sector

The statement comes as Democratic investigators on the Senate Permanent Subcommittee on Investigations release a report alleging that USDT has become a key channel for Iran to evade sanctions. Investigators say 84% of 846 crypto wallets sanctioned over ties to Iran transacted exclusively or nearly exclusively in USDT.

Those findings prompt U.S. Senator Richard Blumenthal to call on the Treasury and Justice departments to investigate potential sanctions violations. The clash adds to regulatory and political pressure on the crypto sector, particularly on dollar-pegged tokens whose cross-border use is drawing closer scrutiny from U.S. lawmakers and enforcement agencies.

In our earlier article on Marco Rubio’s tougher stance toward Iran and wider security priorities, we outlined how Washington is framing Tehran as a central national security challenge alongside other strategic fronts. We also noted Rubio’s warnings that Iran’s economic strain and governance failures are being paired with concerns about resources flowing to destabilizing activities, reinforcing calls for a stronger U.S. response.

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