US Senator Calls for Tether Investigation Over USDT Sanctions Evasion Concerns

Key Facts

1A Senate Democratic staff analysis found that 84% of 846 wallets identified by U.S. or Israeli authorities transacted almost entirely in USDT.

Senator Richard Blumenthal is calling for the U.S. Treasury and Department of Justice to investigate Tether regarding its compliance with sanctions and anti-money-laundering laws. TokenPost reported that the request was sent to Treasury Secretary Scott Bessent and Attorney General Todd Blanche following findings that the USDT stablecoin is heavily utilized by illicit actors to evade international sanctions.

A Senate Democratic staff analysis found that 84% of 846 wallets identified by U.S. or Israeli authorities transacted almost entirely in USDT between June 2021 and August 2026. Tether CEO Paolo Ardoino stated that the stablecoin is not a haven for sanctioned entities, noting that the company froze approximately $550 million in assets across Iran-linked wallets in 2026, including $344 million in April and $130 million in July of that year.