Tether says it has supported freezes of nearly $550 million in Iran-linked USDT in 2026 as U.S. authorities expand sanctions on Iran's central bank. The disclosure lands the same day Senate Democrats published a report accusing the stablecoin issuer of failing to block Iran-connected wallets.
Tether said it helped freeze nearly $550 million in Iran-linked USDT this year as U.S. authorities targeted wallets tied to the Central Bank of Iran and other sanctioned networks. The disclosure came the same day Senate Democrats released a report casting the stablecoin as a tool for Iran to evade sanctions.
Two freezes total $550 million in 2026
The company acted on information from the Treasury Department's Office of Foreign Assets Control and U.S. law enforcement when more than $344 million in USDT was frozen across two addresses in April. OFAC added the same addresses to the Central Bank of Iran's sanctions entry the following day, an entry that also identifies links to the Islamic Revolutionary Guard Corps-Qods Force and Hezbollah.
In July, more than $130 million was frozen across four other TRON wallets as Treasury added four TRON addresses to the central bank's designation. Tether put its total for Iran-linked USDT freezes in 2026 at approximately $550 million. CEO Paolo Ardoino said public blockchains let authorities follow fund movements, describing USDT as, according to crypto.news: "not a haven for sanctioned actors, terrorist organizations or criminal networks".
Senate Democrats call USDT a "lifeline" for Iran
Democrats on the Senate's Permanent Subcommittee on Intelligence published a report Monday alleging that Iran's cryptocurrency-based shadow banking network has processed significant volumes of funds and that Tether has repeatedly failed to block Iran-connected wallets. The report said that when Tether does freeze wallets, it sometimes takes weeks, and that the company has sometimes responded to requests without actually blacklisting them.
The report did not give an overall total for how much USDT the Iranian government transacted, but it said the government made an estimated $2 billion in transactions last year. It also said terrorist groups such as Hamas shifted from Bitcoin and other cryptocurrencies toward USDT.
Treasury has widened sanctions to digital assets
Treasury launched Operation Economic Outcast on Aug. 24 and named digital assets alongside technology, gold, aviation and shipping in five new sectoral sanctions determinations. On Sep. 17, OFAC designated Iranian digital asset venture BitBank, its software developer, and three associates of financier Babak Zanjani, alleging the network used digital asset businesses to move funds for the IRGC, including hundreds of millions of dollars in Bitcoin.
Separately, prosecutors sought forfeiture of $61.2 million in USDT held across ten TRON addresses that court filings said Tether had frozen in 2025, in a case tied to alleged Iranian oil proceeds. Across its law enforcement work, Tether said it cooperates with more than 340 agencies in 67 countries and has helped freeze over $4.9 billion in assets, including more than $2.4 billion connected to U.S. authorities.
Sources: Tether, CoinDesk (snippet-based)
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