US Senate report says Tether provided financial lifeline to Iran

A report by a US Senate investigative panel has described cryptocurrency company Tether's USDT stablecoin as a "significant financial lifeline" for Iran and groups linked to the country.

The report, led by Senate Democrats, says USDT has been used by Iranian authorities to move funds across international borders and support Iran's currency despite extensive US sanctions.

The Senate Permanent Subcommittee on Investigations said its review of a comprehensive collection of cryptocurrency wallets found that 84 percent had conducted transactions involving Tether's USDT.

According to the report, the cryptocurrency was used in transactions connected to Iran, including activity involving the Central Bank of Iran.

The subcommittee said its findings indicate that Tether and USDT have become important components of what it described as Iran's "shadow banking system", allowing financial activity to continue outside traditional banking channels.

The report called for the US Treasury Department and Department of Justice to investigate Tether and examine the use of its stablecoin in transactions involving Iran and its affiliated networks.

Tether's USDT is a digital token designed to maintain a value close to the US dollar and is widely used for transferring funds within cryptocurrency markets.

The Senate findings highlight the growing role of digital currencies in international finance and the challenges they can present for governments attempting to enforce financial sanctions.