Tether Says Freezes Cut Iran-Linked USDT Volume by 94%

Tether’s chief executive Paolo Ardoino said on October 19, 2026, that the company’s wallet freezes have reduced Iran-linked stablecoin transaction volumes by 94% since 2023, according to Forexcrunch. The post on X was a direct rebuttal to a U.S. Senate report that accused the stablecoin issuer of supporting Iran’s shadow banking network.

Forexcrunch reported that Ardoino also said Tether has frozen flagged addresses an average of four weeks before the Treasury Department’s Office of Foreign Assets Control and Israel’s National Bureau for Counter Terror Financing issued their designations, and before blockchain analytics firm Chainalysis labelled them 99% of the time. “Tether actions led to Iran-linked stablecoin volumes declining by 94%,” he wrote, adding that the company acts quickly on new threats through its law enforcement partnerships.

Also read: Japan's MUFG, Mizuho and SMBC finish first joint yen stablecoin test

Key facts

• Ardoino published the 94% figure on X on October 19, 2026, in response to a Senate report.
• The report, published September 28 by Democratic staff on the Senate Permanent Subcommittee on Investigations and led by Senator Richard Blumenthal, examined 846 sanctioned Iran-linked wallets and found 84% predominantly used USDT.
• Tether says it blocked approximately $550 million in Iran-linked USDT in 2026; freezes in April and July together accounted for more than $470 million, with Blockonomi reporting $344 million in April and $130 million in July.
• TRM Labs data, cited by all three outlets, shows USDT’s share of on-chain volume in Iran-attributed wallets fell from 67% in 2025 to 14% in August 2026.
• Tether’s freeze statistics start in 2023, so they only partly cover the earlier years the Senate report criticised.

A rebuttal built on timing

The report credited to Blumenthal described USDT as a significant financial lifeline within Iran’s shadow banking network, and it focused in part on the period before 2024, when it said Tether did not comprehensively freeze flagged wallets. According to Cryptobriefing, Tether has not challenged the finding that USDT dominated those wallets; instead, it argues that the same dominance made it the party best placed to shut the activity down.

Freezing a wallet prevents the tokens held at that address from being moved or spent. Ardoino’s strongest point is the four-week lead: a company that waits for OFAC to publish a list is following rules, while one that acts first is making its own judgments about suspicious addresses. Cryptobriefing noted that the 94% figure is Tether’s own claim about its own performance, with no published methodology.

Also read: Iran oil minister Mohsen Paknejad resigns amid 85% inflation

Forexcrunch also reported that Ardoino spoke remotely at DC Fintech Week on October 13, where he criticised the release of the Senate report to the media before Tether could review it. He said it was important for the public to hear the company’s side.

Independent data measures something else

The TRM Labs figures point in the same direction as Ardoino’s claim but track a different metric. A falling share of on-chain volume does not on its own confirm a 94% drop in absolute volume, and Cryptobriefing noted the data leaves open where the remaining activity moved. Blockonomi reported that the full 94% figure has not been independently verified and that Blumenthal has not publicly responded.

Blockonomi added several details not in the other reports: Iran’s Central Bank has accumulated about $507 million in Tether tokens to support the rial, and Tether’s stablecoin has a market value of about $183 billion, holding more than 60% of the total stablecoin market. It also reported that Washington launched Operation Economic Outcast in August 2026, with Treasury Secretary Scott Bessent saying the U.S. is targeting about $1 billion in Iran-linked crypto assets for seizure. Those assets have not been officially confirmed as frozen, according to Blockonomi, and Forexcrunch said it had not confirmed them as frozen when it published.

Why it matters

The dispute lands as European regulators push for tighter treatment of non-compliant stablecoins and as lawmakers debate the GENIUS Act framework, while a Bank for International Settlements paper argues banks can slow stablecoin growth by paying savers more. Blumenthal is separately examining Tether’s relationship with its U.S. financial partner Cantor Fitzgerald, which has close ties to the Trump administration; Blockonomi reported that a firm linked to Bo Hines, named last autumn as chief executive of Tether’s U.S. division, received $6.3 million from Tether while he helped shape stablecoin legislation. For holders of USDT pairs, the freezes target sanctioned addresses, so the dispute is headline risk rather than an immediate supply event.

What to watch

Investigators are likely to ask how the 94% figure was calculated, which wallets were counted and what 2023 baseline it uses. Movement on the roughly $1 billion in Iran-linked assets targeted under Operation Economic Outcast, and any public response from Blumenthal, are the next concrete markers.

This article is not financial advice. Crypto and stablecoin markets are volatile and uncertain.

Written by

Emily Torres

Emily Torres covers cryptocurrency and decentralized finance for StockPil, tracking blockchain markets and regulatory developments.

Sources: ForexCrunch, Blockonomi, Cryptobriefing