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Blumenthal report says many sanctioned wallets used Tether USDT
The report found that 84% of 846 Iran-linked wallets transacted mainly in USDT, and cited higher USDT use among wallets designated by Israel than those designated by OFAC.
A U.S. Senate investigation led by Senator Richard Blumenthal says most cryptocurrency wallets tied to Iran and regional proxies transacted in Tether's USDT stablecoin, according to a report released Monday by the Senate Permanent Subcommittee on Investigations, Democratic staff.
The report examined blockchain records for 846 wallets sanctioned or targeted for seizure between June 2021 and August 2026, and said 84% transacted exclusively or nearly exclusively in USDT. It also reported that USDT was used predominantly by 87% of the 757 wallets designated by Israel's counter-terror financing bureau, compared with 57% of the 101 wallets designated by the U.S. Treasury's OFAC.
Decrypt reports the report was titled "Tethered to Terrorism" and that its findings were referred to the U.S. Treasury and the Justice Department, as Blumenthal’s office highlighted USDT’s role in the payment networks described in the investigation.
The outlet said Blumenthal characterized Tether as a "superhighway" for Iranian sanctions evasion, including activity tied to hostile drone and missile campaigns and human rights abuses, as described in the report text.