Tether CEO Responds to Iran Sanctions Concerns: Relevant Freezes Occurred 4 Weeks Before Official Sanctions, Iran-Related Stablecoin Trading Volume Dropped 94%

BlockBeats news, October 20: Tether CEO Paolo Ardoino issued a statement responding to U.S. Senator Blumenthal's analysis of its sanctions compliance, stating that since 2023, Tether has frozen relevant addresses on average 4 weeks earlier than formal sanctions by OFAC and NBCTF; in 99% of relevant cases, the freezes also preceded Chainalysis's tagging of the addresses cited in the report.

Ardoino also stated that Tether's actions have reduced Iran-related stablecoin transaction volume by 94%, and that the company's cooperation with law enforcement agencies enables it to respond quickly to new threats.

Previously, on September 28, Blumenthal released a Democratic staff report from the Senate Permanent Subcommittee on Investigations. The report stated that of the 846 wallets it analyzed that were sanctioned or designated for seizure due to links to Iran and its regional proxy organizations, 84% used USDT exclusively or almost exclusively for transactions. The report accused Tether of failing to adequately freeze illicit wallets, and Blumenthal accordingly called on the U.S. Department of the Treasury and the Department of Justice to investigate its anti-money laundering and sanctions compliance.

Tether said in a statement the same day that since 2026 alone, the company has assisted in freezing approximately $550 million in Iran-related USDT, with the relevant wallets identified by U.S. authorities as connected to Iran's central bank and sanctions-evasion networks.