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Tether Reports 94% Decline in Iran-Linked Stablecoin Transactions Following Address Freezes
Tether, a prominent stablecoin issuer, announced on October 19, 2026, that its proactive address freezes have resulted in a 94% reduction in transaction volumes associated with Iran-linked wallets since 2023. This statement follows a Senate report that identified Tether's USDT as the primary stablecoin used by sanctioned Iranian wallets, prompting scrutiny of the company's compliance with sanctions and anti-money laundering regulations.
CEO Paolo Ardoino emphasized that Tether's actions were taken ahead of official sanctions from the U.S. Treasury's Office of Foreign Assets Control (OFAC) and Israel's National Bureau for Counter Terror Financing (NBCTF). Tether reported blocking approximately $550 million in USDT linked to Iran throughout 2026, with significant freezes occurring in April and July, which accounted for over $470 million of the total.
The Senate report, released on September 28, 2026, highlighted that 84% of the 846 sanctioned wallets analyzed predominantly utilized Tether's USDT. Ardoino's remarks suggest that Tether's ability to freeze addresses—akin to deactivating a gift card—positions the company as a key player in curbing illicit activities. While the reported decline in USDT usage among these wallets is notable, questions remain regarding the overall impact on transaction volumes and the movement of funds to other platforms.
Source: KLEA News