Tether reports freezing nearly $550 million in Iran-linked USDT in 2026
Tether disclosed that it supported U.S. authorities in freezing approximately $550 million in USDT connected to Iranian sanctions networks in 2026, arriving as a U.S. Senate inquiry scrutinized the stablecoin's use in Iranian illicit finance.
Stablecoin issuer Tether stated that it assisted U.S. law enforcement and sanctions authorities in freezing approximately $550 million in USDT linked to Iran's central bank and broader sanctions networks during 2026. Major enforcement actions included freezing more than $344 million across two addresses in April—which the Office of Foreign Assets Control subsequently listed as digital currency identifiers for the Central Bank of Iran—and more than $130 million across four wallets in July.[2][3][5]
The disclosure coincided with a report from Democratic minority staff of the U.S. Senate Permanent Subcommittee on Investigations, which examined 846 crypto wallets targeted by U.S. or Israeli authorities over ties to Iran and regional groups. The inquiry found that 84% of those addresses transacted predominantly or exclusively in USDT. Following the findings, Sen. Richard Blumenthal referred the report to the Treasury and Justice departments, calling for investigations into Tether's anti-money laundering and sanctions compliance. Senate investigators also alleged that delays in blacklisting addresses allowed more than $34.6 million in USDT to exit 34 wallets between an Israeli seizure notice in June 2023 and their eventual freeze in March 2024.[1][5][6]
Tether Chief Executive Paolo Ardoino defended the company's record, insisting that USDT is not a haven for sanctioned actors and noting that public blockchains provide investigators with clear visibility into transactions. Tether reported that it collaborates with more than 340 law enforcement agencies across 67 countries, having assisted in freezing over $4.9 billion in total assets globally, including more than $2.4 billion in cooperation with U.S. agencies.[2][4][5][6]
Key facts
- Tether reported supporting authorities in freezing roughly $550 million in USDT connected to Iran's central bank and sanctions networks during 2026.
- The 2026 freezes included over $344 million across two addresses in April and more than $130 million across four wallets in July.
- OFAC designated the two addresses frozen in April as digital currency identifiers for the Central Bank of Iran.
- A Senate Permanent Subcommittee on Investigations minority staff report found that 84% of 846 sanctioned Iran-linked wallets transacted predominantly in USDT.
- Senate investigators alleged that more than $34.6 million in USDT moved out of 34 wallets between an Israeli seizure notice in June 2023 and their freezing in March 2024.
- Sen. Richard Blumenthal asked the DOJ and Treasury Department to investigate Tether's anti-money laundering and sanctions compliance following the subcommittee's findings.
- Tether stated it works with over 340 law enforcement agencies across 67 countries and has helped freeze more than $4.9 billion globally, including over $2.4 billion with U.S. agencies.
Sources · 6 sources
- CT
Coin TelegraphArticle ·
Tether says it helped freeze $550M in Iran-linked USDT this year The disclosure came as Senate Democratic investigators alleged USDT had become a key part of Iran’s shadow banking network.
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
Tether Says It Has Helped Freeze Nearly $550M in Iran-Linked USDT in 2026 Tether said it has supported U.S. law enforcement and sanctions authorities in freezing approximately $550 million in USDT linked to Iran’s central bank and sanctions networks in 2026. This included more than $344 million across two addresses frozen in April, which were subsequently designated by OFAC as digital currency identifiers for the Central Bank of Iran, and more than $130 million across four wallets frozen in July. Tether said it currently works with more than 340 law enforcement agencies across 67 countries and has helped freeze more than $4.9 billion in assets globally.
Open source - BS
BSCN@BSCNewsPost on X ·
$550M Worth of Iran-Connected Assets Frozen by Tether Under Sanctions Enforcement Program @Tether has frozen an aggregate of $550M of $USDT in 2026, particularly from financial networks connected to the Central Bank of Iran and the IRGC. These enforcement actions were carried out with the US Treasury and OFAC, marking a strategic step up for Tether’s compliance program as digital assets emerge as a key subject in US sanctions policy under “Operation Economic Outcast.” This puts the issuer’s history at over 2,900 global investigations, making Tether one of the lead enforcement partners for organizations like the Department of Justice, the FBI, and the Secret Service.
Open source - CO
CoinDesk@CoinDeskPost on X ·
LATEST: Tether says it has supported the freezing of nearly $550 million in Iran-linked $USDT in 2026 as the U.S. expands its sanctions campaign. The company says it works with more than 340 law enforcement agencies across 67 countries. https://t.co/B0oERwU6gS
Open source - CR
CryptoSlateArticle ·
Tether claims $550 million in Iran freezes, but $35 million slipped past Senate Tether says it helped freeze nearly $550 million in Iran-linked USDT during 2026, while Democratic investigators on a Senate subcommittee allege that delays in blacklisting some identified wallets let tens of millions of dollars keep moving. A preliminary report released Sept. 28 by Democratic minority staff of the Senate Permanent Subcommittee on Investigations analyzed 846 crypto wallets that US or Israeli authorities had sanctioned or targeted for seizure over their associations with Iran and regional groups. The report said 84% transacted exclusively or nearly exclusively in USDT . Sen. Richard Blumenthal, the Connecticut Democrat and ranking member of the subcommittee, referred the findings to the Treasury and Justice departments and asked them to investigate Tether's anti-money laundering and sanctions compliance. The referrals do not establish that Tether violated federal law or that either department has opened a new case. Tether published its own statement the same day, saying actions involving USDT had resulted in approximately $550 million being frozen across wallets that US authorities identified as connected to Iran's central bank and Iranian sanctions networks. The money that moved before the freeze The Senate report's 84% figure describes a selected population. Investigators assembled the sample from wallets identified by the Treasury Department's Office of Foreign Assets Control and Israel's National Bureau for Counter Terror Financing as associated with Iran or regional groups. The dataset covered over five years of designations through August 2026. For its analysis, the Senate report defined a wallet as transacting “predominantly” in a digital currency when that asset represented more than 80% of the dollar value of its aggregate transactions. The number does not show what share of all USDT transactions is illicit, nor does it measure crypto's share of Iran's overall sanctions-evasion activity. USDT is designed to track the US dollar and can move across blockchain networks without a conventional bank transfer. However, Tether retains issuer-level controls that can blacklist addresses and prevent USDT held at them from moving. That makes the timing of a freeze the main issue for Democratic investigators. The minority staff report examined 39 wallets identified by Israel's NBCTF in June 2023 as associated with Tawfiq Muhammad Sa'id al-Law, whom the US Treasury later sanctioned for providing financial services to Hezbollah. According to the report, five of the addresses had been blacklisted, while the remaining 34 were not frozen until March 2024. Senate investigators calculated that more than $34.6 million in USDT moved out of those wallets after the Israeli seizure notice was published and before the remaining addresses were frozen. Those findings by the Democratic minority are not a court determination that Tether violated US law. They also concern an earlier period than the enforcement actions Tether highlighted from 2026. Related Reading Tether, Binance and a $1.5 billion Iran oil network converge in new US forfeiture case Tether points to action before public designation On April 23, Tether said it supported US authorities in freezing more than $344 million in USDT across two addresses after receiving information from OFAC and other US law enforcement agencies. The following day, OFAC updated the Central Bank of Iran's existing sanctions entry to add those same two blockchain addresses as digital-currency identifiers. The listing links the central bank to the IRGC-Qods Force and Hizballah. Tether also said more than $130 million in USDT across four wallets was frozen in July as the Treasury expanded the Central Bank of Iran's listed blockchain addresses. Those two disclosed actions account for at least $474 million of the approximately $550 million Tether says was frozen during 2026. The company did not provide a wallet-by-wallet breakdown reconciling the disclosed examples with the full headline total. CEO Paolo Ardoino said Tether acts when authorities provide credible information and argued that public blockchains give investigators visibility into fund movements that cash does not. Meanwhile, the Senate report said Tether acknowledged receiving a June 4 request for information and documents from the subcommittee but had not responded as of the report's publication. Tether's Sept. 28 public statement did not directly address the report's 846-wallet analysis or the $34.6 million example of funds investigators say moved before addresses were frozen. A separate US forfeiture case is seeking approximately $61 million in cryptocurrency allegedly tied to black-market Iranian oil sales. Federal prosecutors said the wider network moved more than $1.5 billion in proceeds and alleged that some funds were intended to benefit Iran's government and military, including the Islamic Revolutionary Guard Corps. The Justice Department said the forfeiture action targeted cryptocurrency allegedly connected to sanctions evasion and money laundering tied to Iranian petroleum sales. The two sets of evidence illustrate both sides of issuer-controlled stablecoins: authorities can immobilize large balances once they identify addresses, while delays before blacklisting can leave funds free to move. Whether the delays identified by Senate minority staff represent isolated enforcement gaps or broader compliance failures is now the question Blumenthal has asked federal agencies to investigate. The post Tether claims $550 million in Iran freezes, but $35 million slipped past Senate appeared first on CryptoSlate .
Open source - LD
Lark Davis@LarkDavisPost on X ·
Tether says it helped law enforcement freeze nearly $550M in Iran-linked USDT so far this year. Key actions included: • $344M+ frozen in April tied to the Central Bank of Iran • $130M+ frozen across four wallets in July (plus smaller 2026 actions) • Total frozen to date: $4.9B+ globally ($2.4B+ with US agencies) The disclosure came the same day a Senate PSI report found 84% of 846 sanctioned Iran-linked wallets transacted "exclusively, or nearly exclusively" in USDT, prompting Sen. Richard Blumenthal to seek DOJ and Treasury probes. CEO Paolo Ardoino pushed back, insisting USDT "is not a haven for sanctioned actors."
Open source