Tether CEO claims Iran-linked USDT volumes fell 94% due to wallet freezes

Proactive Actions: Tether’s Response to Regulatory Pressure

According to Ardoino, Tether implemented wallet freezes for addresses suspected of links to Iran, with action often taken weeks before formal designations by the U.S. Treasury’s Office of Foreign Assets Control (OFAC). He noted that, on average, Tether froze suspicious wallet addresses four weeks before OFAC acted and claimed that, in the majority of cases, interventions preceded similar s from blockchain analytics firm Chainalysis.

When a wallet is frozen, the tokens associated with that address become inaccessible for transfer or spending. Ardoino emphasized that Tether remains committed to cooperating proactively with global regulators and authorities.

Ardoino reported that Tether’s wallet freeze program led to a 94% reduction in Iran-linked stablecoin activity since 2023, with the company typically acting weeks ahead of official U.S. sanctions.

Independent research from TRM Labs aligns with Ardoino’s claim, documenting a sharp fall in Tether’s market share for Iran-attributed wallet transfers from 67% in 2025 to just 14% by August 2026. Tether froze approximately $550 million worth of tokens linked to Iran so far in 2026, with major blocks of $344 million in April and $130 million in July. The company has also acted against wallets linked to Iranian platforms such as Wallex that are under sanctions.

Senate Scrutiny and Broader Regulatory Context

The remarks come in response to a September 28 report from the Democratic staff of the Senate Permanent Subcommittee on Investigations. The report scrutinized 846 wallets flagged as connected to Iran, determining that 84% of these wallets primarily conducted transactions with Tether’s stablecoin.

The report described Tether’s stablecoin as a crucial resource for Iran’s parallel financial network. It also noted that Iran’s Central Bank has accumulated approximately $507 million in Tether tokens, using them to support the local currency, the rial.

The Senate subcommittee’s findings characterized Tether as a primary channel for bypassing U.S. economic restrictions and facilitating shadow banking for Iran.

Currently, Tether’s stablecoin holds a market value of about $183 billion, controlling more than 60% of the global stablecoin market and maintaining its position as the leading asset in the sector.

These developments come amid ongoing legislative debate over the GENIUS Act, a U.S. regulatory framework for stablecoins. Lawmakers are also examining the relationship between companies involved with stablecoins and officials involved in crafting regulations; one report indicated that an entity connected to Bo Hines received $6.3 million from Tether during his tenure influencing legislation.

Further action emerged in August 2026, when Washington launched Operation Economic Outcast to sever Iran’s financial connections. Treasury Secretary Scott Bessent announced that the U.S. aims to seize nearly $1 billion in crypto assets with links to Iran under this new policy, though those assets have not been officially confirmed as frozen.

Technical Monitoring and Meme Tokens

On-chain forensics remains pivotal in identifying suspect activity and tracking asset flows in real time. Alongside sanctions enforcement, close monitoring of token movements and trading behaviors is essential, especially in rapidly moving sectors such as meme tokens. In the meme token market, an internet trend can transform into millions of dollars of interest within days. According to data shared by Fomo App, a trade involving “Niu Lai”—which turned an initial $99 investment into approximately $370,000, stands out as a striking example of this activity. In this market, tracking not only prices but also the timing and token choices of investors is crucial. Fomo App brings token discovery and trading together on a single platform, featuring social feeds, investor rankings, and trade notifications. Discover Fomo App to follow the world of meme tokens alongside investor activity.

While TRM Labs confirmed the general downward trend of Tether’s involvement with Iran-linked wallets, the full 94% figure has not undergone independent audit. Senator Richard Blumenthal, leading the subcommittee inquiry, has not commented publicly on Ardoino’s statistics.