Democrats slam Tether’s ‘pervasive’ role in Iran shadow banking

Homepage > News > Business > Democrats slam Tether’s ‘pervasive’ role in Iran shadow banking TL;DR: A U.S. Senate Democratic report alleges Tether’s USDT was widely used in Iran-linked financial networks, while Tether highlights nearly $550 million in Iran-linked freezes. Separately, a U.S. government seizure involving Tether-linked payment processor Capstone could leave Tether with about $64 million in affected assets. Key Takeaways: Senate Democrats flagged Tether’s alleged role in Iran-linked shadow banking in a new report. The report found 84% of 847 Iran-linked sanctioned or targeted wallets transacted exclusively or nearly exclusively in USDT. Tether said it supported nearly $550 million in Iran-linked USDT freezes as U.S. sanctions expanded. Senate Democrats questioned Tether’s Trump administration ties and regulatory oversight. The report cited $603 million in USDT processed by two sanctioned Iranian oil smugglers between 2021 and 2025. A DOJ seizure involving Tether-linked payment processor Capstone could affect about $64 million in Tether assets held through EQIBank. Senate Democrats think Tether’s USDT stablecoin is helping Iran evade U.S. sanctions, while Tethe...