Tether claims $550 million in Iran freezes, but $35 million slipped past Senate

According to CryptoSlate, a preliminary report released by Democratic minority staff of the Senate Permanent Subcommittee on Investigations is scrutinizing Tether's response times to Iran-linked wallets. The report analyzed 846 crypto wallets sanctioned or targeted by US or Israeli authorities, stating that 84% transacted exclusively or nearly exclusively in USDT.

Senate investigators highlighted an instance where 34 addresses identified by Israel's NBCTF in June 2023 were not frozen until March 2024, allowing more than $34.6 million in USDT to move out before being blacklisted. Senator Richard Blumenthal referred the findings to the Treasury and Justice departments to investigate whether the delays reflect isolated gaps or broader compliance problems.

Tether published a statement noting that actions involving USDT resulted in approximately $550 million being frozen across wallets identified as connected to Iran's central bank and Iranian sanctions networks during 2026. CEO Paolo Ardoino stated that Tether acts when authorities provide credible information. The referrals do not establish that Tether violated federal law, and Tether had not responded to the subcommittee's June 4 request for information as of the report's publication.