Tether Disputes US Senator's Iran Sanctions Allegations, Cites Early Wallet Freezes

Tether is pushing back against allegations that its stablecoin infrastructure has helped Iran evade international sanctions.
US Senator Richard Blumenthal's report described Tether as a significant financial channel for Iran-linked shadow banking activity. In response, CEO Paolo Ardoino said the company has proactively frozen suspicious wallets, averaging approximately four weeks before their formal designation by US and Israeli authorities since 2023.
Ardoino also claimed Tether's enforcement actions contributed to a 94% decline in Iran-linked stablecoin transaction volumes.
The competing claims highlight growing scrutiny of stablecoin issuers' sanctions compliance. Tether's figures and the report's allegations should be evaluated independently, particularly when assessing whether transaction declines can be attributed directly to enforcement measures.