- Ardoino says Tether froze wallets four weeks before OFAC designations on average.
- A Senate report found 84% of 846 Iran-linked wallets dealt almost wholly in USDT.
- Blumenthal asked the Treasury and Justice to investigate Tether sanctions compliance.
Tether CEO Paolo Ardoino has pushed back on a U.S. Senate report that accuses the stablecoin issuer of propping up Iran’s shadow banking network, saying the company usually acts before governments do.
Ardoino’s Claims
In a post on X, Ardoino said Senator Richard Blumenthal’s “analysis” of Tether’s sanctions report leaves out key facts. His points:
- Since 2023, Tether has frozen addresses on average four weeks before OFAC and Israel’s National Bureau for Counter-Terror Financing formally designated them.
- In 99% of those cases, Tether froze the addresses before Chainalysis labelled them.
- Its actions cut Iran-linked stablecoin volumes by 94%.
- The speed comes from Tether’s partnerships with law enforcement.
Tether has not published the data behind the 94% figure. It has not said what period the drop covers, what it is measured against, or whether it counts only USDT or all stablecoins.
What the Senate Report Alleges
“Tethered to Terrorism” was published on September 28 by Democratic staff of the Senate Permanent Subcommittee on Investigations. Its main findings:
- Investigators analysed 846 wallets sanctioned or targeted for seizure over ties to Iran and its proxies between June 2021 and August 2026.
- 84% of them transacted exclusively or almost exclusively in USDT.
- The network was used to move money for the Iranian government and its proxies, including the Central Bank of Iran, and in some cases to buy drones and other military equipment.
- Before 2024, Tether did not consistently freeze wallets flagged by counter-terrorism agencies, according to the report.
- Hamas shifted from bitcoin and other crypto toward USDT as a result, the report says.
Blumenthal’s Referral
Blumenthal, the subcommittee’s ranking member, sent the findings to Treasury Secretary Scott Bessent and Attorney General Todd Blanche. He asked them to investigate Tether’s anti-money laundering and sanctions compliance, including possible breaches of the Bank Secrecy Act and the International Emergency Economic Powers Act. Neither department has said whether it will act.
Political Questions
In his letter to Bessent, Blumenthal said investigations and enforcement actions against the crypto industry had been dropped, settled on light terms or reversed since President Donald Trump returned to office. He said that Cantor Fitzgerald, until recently run by Commerce Secretary Howard Lutnick and now controlled by Lutnick’s children, owns 5% of Tether and holds a large share of its more than $100 billion in assets in the United States.
The report was produced by minority staff and does not represent an official finding of wrongdoing.
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