Overview
- The Senate Permanent Subcommittee on Investigations found on Monday that Iranian state and IRGC-linked networks relied heavily on Tether’s USDT to move value around international sanctions.
- Tether says it froze about $550 million in Iran-linked USDT in 2026, including roughly $344 million in April and $131 million in July after law enforcement and OFAC identified specific wallets.
- The Justice Department filed a civil forfeiture complaint on Sept. 14 seeking roughly $61.2 million in USDT tied to alleged black‑market Iranian oil proceeds and obtained a warrant to allow FBI custody of the assets.
- USDT’s smart contract includes a built-in freeze function that lets the issuer block transfers from named addresses, creating a centralized control point that concentrates risk for exchanges and foreign counterparties.
- Treasury’s August Operation Economic Outcast formally added digital assets to sectoral Iran sanctions, a move that raises compliance and secondary‑sanctions exposure for banks, crypto platforms, and firms that touch Iranian-linked flows.