The US Senate is investigating the use of the USDT stablecoin by Iranian entities and the effectiveness of Tether’s targeted freezes. The company reported freezing nearly $550 million in USDT linked to Iran.

USDT Transfers on Tron and Ethereum, Oil, and the Houthis

Iranian authorities have been actively using USDT for transfers that bypass the traditional financial system. The US and Israel identified hundreds of crypto wallets connected to Iran, the IRGC, and its allies; most transactions involved USDT on the Tron and Ethereum networks. The stablecoin was used in schemes related to the sale of Iranian oil and financing the Houthis; two identified Chinese operations processed hundreds of millions of dollars.

Iranian Exchanges and US Sanctions in June

Key players remain the Iranian crypto exchanges Nobitex, Wallex, Bitpin, and Ramzinex, which allow USDT to be exchanged for Iranian rials. In June, the US imposed sanctions on these platforms.

Targeted Freezes Under Review

Tether has the technical capability to freeze USDT at specific addresses. The Senate is examining how effectively the company identifies and blocks wallets involved in sanctions evasion.