Tether CEO Says freezes of Iran-related addresses preceded sanctions, Iran-related transaction volume declined 94%
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AT A GLANCE
Tether responds to questions over Iran-related sanctions compliance, saying it froze relevant addresses in advance and reduced Iran-related stablecoin transaction volume 94%。
Article
Tether CEO Responding to questions over Iran-related sanctions: relevant freezes predated formal sanctions 4 weeks, Iran-related stablecoin transaction volume declined 94%According to BlockBeats,October 20, Tether CEO Paolo Ardoino responded in a post to U.S. Senator Blumenthal's analysis of its sanctions compliance, stating that since 2023, Tether has frozen relevant addresses an average of OFAC and NBCTF weeks before formal sanctions by 4; in relevant cases involving 99%, the freezes also preceded Chainalysis's labeling of the addresses covered in the report.
Ardoino also stated that Tether's actions reduced Iran-related stablecoin transaction volume by 94%, and that the company's cooperation with law-enforcement agencies enables it to respond rapidly to emerging threats.
Previously, Blumenthal September 28 released an investigation report by the Democratic staff of the Senate Permanent Subcommittee on Investigations. The report stated that, among the 846 wallets it analyzed that were sanctioned or designated as seizure targets due to links to Iran and its regional proxy organizations, 84%used only or almost exclusively USDT for transactions. The report accused Tether of inadequately freezing illicit wallets, and Blumenthal consequently called on the U.S. Treasury Department and Department of Justice to investigate its anti-money-laundering and sanctions compliance.
In a post the same day, Tether stated that since 2026 alone, the company has assisted in freezing approximately 550000000 USD Iran-related USDT, with the related wallets identified by U.S. authorities as linked to the Central Bank of Iran and sanctions-evasion networks.
Original link https://m.theblockbeats.info/flash/372641
Key points
01
Tether CEO Paolo Ardoino responded to U.S. Senator Blumenthal's analysis of its sanctions compliance.
02
Ardoino stated that since 2023, Tether has frozen relevant addresses an average of OFAC and NBCTF weeks before formal sanctions by 4.
03
Ardoino stated that in relevant cases involving 99%, freezes preceded Chainalysis's labeling of the addresses covered in the report.
04
Ardoino stated that Tether's actions reduced Iran-related stablecoin transaction volume by 94%。
05
Blumenthal September 28 released an investigation report stating that, among the 846 related wallets analyzed, 84%used only or almost exclusively USDT for transactions.
06
The report accused Tether of inadequately freezing illicit wallets, and Blumenthal called on the U.S. Treasury Department and Department of Justice to investigate its anti-money-laundering and sanctions compliance.
07
Tether stated that since 2026 alone, the company has assisted in freezing approximately 550000000 USD Iran-related USDT。
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The dispute centers on whether Tether promptly prevented wallets that were sanctioned or designated as seizure targets from using USDT. The Senate report considered its freezing measures insufficient; Tether and its CEO responded with the timing of advance freezes, the decline in transaction volume, and the amount it assisted in freezing.
Why it matters to readers
This incident concerns USDT issuer's anti-money-laundering, sanctions-compliance, and law-enforcement cooperation capabilities, and also affects outside assessments of whether it can restrict transactions involving high-risk wallets.
Beginners holding or using USDT should know that the issuer may freeze relevant addresses; the current materials include both the investigation report's accusations and Tether's response, so conclusions should not be based solely on figures from one side.
Risks and unknowns
The advance 4 weeks, 99%, the decline of 94%, and approximately 550000000 USD are all claims by Tether or its CEO; the materials provide no independent verification.
The materials do not state whether the U.S. Treasury Department or Department of Justice has formally initiated an investigation or enforcement action.
The materials do not provide details on the 846 wallets, the relevant frozen addresses, or the methodology for calculating transaction volume.
The disagreement between the Senate report and Tether's response remains unresolved in the materials.
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Related concepts
Stablecoin
An asset that seeks to track a reference value and is subject to risks including depegging, reserves, and redemption.
The destination information that must be verified when receiving or sending cryptocurrency; transfers are generally irreversible if it is entered incorrectly.
