The subcommittee seeks reviews of sanctions and anti-money-laundering compliance
Senator Richard Blumenthal asked the US Treasury Department and Department of Justice to examine Tether‘s compliance with sanctions and anti-money-laundering rules. The request, made public on September 28 by the Senate Permanent Subcommittee on Investigations, concerns the use of USDT in wallets linked to Iran.
Investigators examined 846 wallets flagged or subject to seizure for links to Iran. According to the report, 84% conducted transactions exclusively or almost exclusively in USDT. Blumenthal sent the findings to Treasury Secretary Scott Bessent and Attorney General Todd Blanche, citing potential violations of sanctions and the Bank Secrecy Act.
Blumenthal also cited Cantor Fitzgerald’s approximately 5% stake in Tether and the firm’s ties to the family of Commerce Secretary Howard Lutnick.
Tether said it had helped freeze about $550 million in USDT linked to Iran’s central bank and other sanctioned entities in 2026. The company also says it cooperates with more than 340 law-enforcement agencies in 67 countries.
