Tether, a major stablecoin issuer, is responding to a recent Senate report that accused it of enabling financial activity in Iran. Source: coindesk.com.
Senate Report Accuses Tether of Supporting Iran’s Shadow Banking
The report claims Tether provided a ‘significant financial lifeline’ within Iran’s shadow banking network.
It focuses on activity before 2024, saying Tether didn’t consistently freeze flagged wallets during that time.
It argues this lack of action allowed illicit actors, including Hamas, to shift from using cryptocurrencies to using USDT.
Paolo Ardoino, Tether’s CEO, has publicly challenged the report’s conclusions.
He says Tether has consistently acted ahead of official sanctions by freezing suspicious wallets.
On average, Tether froze wallets four weeks before the U.S. Treasury’s OFAC or Israel’s NBCTF designated them.
In 99% of cases, Tether identified and froze wallets before Chainalysis labeled them as suspicious.
Key Claim: 94% Drop in Iran-Linked USDT Volumes
Ardoino says these actions led to a 94% decline in Iran-linked stablecoin volumes.
He believes this shows a measurable impact of Tether’s monitoring and enforcement efforts.
At DC Fintech Week in Washington, Ardoino spoke directly about the Senate report.
He criticized the report’s release to the media before Tether could review it.
He said it’s important for the public to hear Tether’s side of the story.
CEO’s Statement on Bad Actors and Future Work
Ardoino said Tether’s goal is to remove bad actors from the USDT ecosystem.
He notes these actors now move to platforms outside the U.S. and outside Tether’s control.
He says the work is not finished, but he remains confident in Tether’s role.
Personal Reflection on Tether’s Mission
During the event, Ardoino said: ‘I wake up in the morning and I look at myself in the mirror, and I know that we’re doing the right thing.’
Political Context and Future Risks
Senator Richard Blumenthal has expanded his probe to include Tether’s U.S. financial partner, Cantor Fitzgerald.
Cantor Fitzgerald has close ties to former President Donald Trump.
Tether named Bo Hines, a former White House crypto adviser under Trump, as CEO of its U.S. division last fall.
Recent political trends suggest Democrats may regain a majority in the Senate, which could expand Blumenthal’s authority over crypto investigations.
Sources & further reading
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