Tether CEO Paolo Ardoino announced on October 19, 2026, that the company's proactive address freezing strategy reduced transaction volumes linked to Iran by 94% since 2023. This statement follows a September 28, 2026, Senate report by Senator Richard Blumenthal, which identified USDT as the primary stablecoin used in 84% of 846 analyzed sanctioned wallets with Iranian links.
Tether reported blocking approximately $550 million in USDT associated with Iran throughout 2026. Of this total, over $470 million was frozen during two major operations in April and July. Ardoino stated that Tether typically freezes suspicious addresses an average of four weeks before official sanctions are issued by the US Treasury’s OFAC or Israel’s NBCTF.
Independent data from TRM Labs supports the trend, showing that the share of USDT in on-chain volume for Iran-attributed wallets decreased from 67% in 2025 to 14% in August 2026. Tether maintains that these measures demonstrate effective compliance, despite ongoing regulatory scrutiny regarding the company's adherence to anti-money laundering protocols.
