Stablecoin issuer Tether announced it assisted international law enforcement in freezing approximately $550 million in Iran-linked USDT during 2026, as Democratic investigators intensified scrutiny of the company's role in potential sanctions evasion.
According to Tether's statement, the company froze more than $130 million in USDT across four wallets this year, with a separate action in April targeting more than $344 million linked to Iran's Central Bank. The company emphasized its long-standing cooperation with authorities globally.
Tether CEO Paolo Ardoino stated: "Tether has consistently demonstrated that USDT is not a haven for sanctioned actors, terrorist organizations or criminal networks."
The disclosure came as the Senate Permanent Subcommittee on Investigations released findings alleging USDT had become a significant channel for Iran to circumvent sanctions. The investigation examined 846 crypto wallets sanctioned for Iran ties and found that 84% had transacted exclusively or nearly exclusively in USDT.
In response to the report, US Senator Richard Blumenthal called for the Treasury and Justice departments to investigate potential sanctions violations.
Tether cited its broader enforcement record, stating that cooperation with authorities has resulted in more than $4.9 billion in frozen assets globally, including more than $2.4 billion in actions involving US authorities.
"The DOJ, FBI, Secret Service, HSI, OFAC and authorities around the world have repeatedly worked with Tether to trace, freeze and recover assets," Ardoino said. "We will continue to make that capability available to authorities working to stop terrorism, sanctions evasion, fraud and other serious crimes."
