Tether CEO Paolo Ardoino pushed back against a U.S. Senate report on October 19, claiming the company’s proactive wallet freeze program has driven a 94% drop in Iran-linked stablecoin transaction volumes since 2023.
What the 94% Drop Means for USDT Holders
Third-party data backs Ardoino’s directional claim. According to TRM Labs, USDT’s share of on-chain volume in Iran-attributed wallets fell from 67% in 2025 to just 14% by August 2026.
Ardoino posted the figures on X, saying Tether froze relevant addresses an average of four weeks before official designations by the U.S. Treasury’s OFAC.
He added that in 99% of cases, Tether acted before Chainalysis even labeled the addresses.
The statement directly responds to a September 28 Democratic staff report from the Senate Permanent Subcommittee on Investigations.
That report, which found USDT used in sanctioned Iran wallets, concluded that 84% of 846 flagged Iran-linked wallets transacted almost exclusively in USDT.
It described the stablecoin as a “significant financial lifeline” for Iran’s shadow banking network.
This is not the first time Tether has moved against Iran-linked addresses. The firm previously froze Iranian exchange wallets tied to Wallex and other sanctioned platforms.
In 2026 alone, it froze roughly $550 million in Iran-linked USDT, including $344 million in April and $130 million in July.
Those moves align with a broader U.S. pressure campaign, Washington launched Operation Economic Outcast in August 2026 to sever Iran’s financial lifelines.
USDT currently commands a $183 billion market cap, holding over 60% of the entire stablecoin market.
Persistent Senate scrutiny had placed headline risk on that dominance, Ardoino’s data points to operational agility that could lower the probability of severe enforcement action.
The timing also intersects with the GENIUS Act stablecoin framework debate.
Notably, Bo Hines’ firm received $6.3M from Tether while he helped shape stablecoin legislation, a conflict-of-interest story keeping regulatory attention elevated around the issuer.
Senate Scrutiny Continues Amid Broader Crypto Seizure Push
Senator Richard Blumenthal, who led the subcommittee probe, has not responded publicly to Ardoino’s 94% claim.
Meanwhile, the broader sanctions campaign moves forward. Treasury Secretary Scott Bessent indicated Washington is targeting roughly $1 billion in Iran-linked crypto assets for seizure as part of Operation Economic Outcast.
Those assets have not been officially confirmed as frozen.
The deeper backdrop is well-documented. Iran’s Central Bank accumulated $507 million in USDT to prop up the rial, making Tether’s compliance posture central to any discussion of USDT’s role in sanctioned economies.
Ardoino’s latest figures, if independently verified, suggest the stablecoin’s exposure to that risk has narrowed sharply.
