Tether CEO Says It Frozen Iranian-Linked Addresses Four Weeks Before Sanctions, Volume Dropped 94%

Messari News: On October 20, Tether CEO Paolo Ardoino responded to Senator Blumenthal’s analysis of its sanctions compliance, stating that since 2023, Tether has frozen relevant addresses an average of four weeks earlier than the official sanctions issued by OFAC and the NBCTF; in 99% of related cases, the freezes occurred before Chainalysis flagged the addresses in its reports. Ardoino also noted that Tether’s actions have reduced stablecoin transaction volumes related to Iran by 94%, and its collaboration with law enforcement enables rapid responses to emerging threats. Previously, on September 28, Blumenthal released a Democratic-led investigative report from the Senate Permanent Subcommittee on Investigations, which found that among 846 wallets sanctioned or targeted for seizure due to links with Iran and its regional proxies, 84% used USDT exclusively or almost exclusively. The report accused Tether of failing to adequately freeze illicit wallets, prompting Blumenthal to call on the U.S. Treasury and Department of Justice to investigate its AML and sanctions compliance. On the same day, Tether published a statement asserting that since 2026, the company has assisted in freezing approximately $550 million in USDT linked to Iran, with the associated wallets identified by U.S. authorities as connected to the Central Bank of Iran and sanctions evasion networks.