Tether’s Proactive Freezes Slash Iran-Linked Stablecoin Volume by 94%

• Tether CEO Paolo Ardoino stated that the company’s proactive measures have resulted in a 94% reduction in stablecoin activity linked to Iran.
• The statement follows a report from Senate Democrats accusing the stablecoin issuer of failing to prevent transactions tied to sanctioned nations, including Iran.

Tether, the world’s leading stablecoin issuer, has faced scrutiny following a report released by Democrats on the Senate’s Homeland Security and Governmental Affairs Committee’s Permanent Subcommittee on Intelligence. The report, spearheaded by Senator Richard Blumenthal and other committee members, accused Tether of failing to effectively restrict transactions associated with wallet addresses linked to Iran.

Paolo Ardoino, Tether’s CEO, has strongly refuted the allegations, pointing out inaccuracies in the report. He emphasized that the company has effectively halted virtually all illicit financing activities connected to the heavily sanctioned nation.

Tether’s Intervention Cuts Iran-Linked Stablecoin Volume by 94%

In a statement on Monday, Ardoino highlighted that Tether’s actions have led to a dramatic 94% drop in stablecoin volume linked to Iran. He also criticized the Senate report for deliberately omitting the fact that the company proactively flagged anomalous transactions tied to the Middle Eastern nation well before official confirmation from authorities.

According to the CEO, Tether typically froze wallet addresses an average of four weeks prior to official sanction designations by the Office of Foreign Assets Control (OFAC) and the National Bureau of Terror Financing of Israel (NBCTF). Furthermore, the company acted on sanctioned entities 99% of the time before they were detected by the blockchain analytics firm Chainalysis.

Analyzing Iran’s Stablecoin Activity

Analysts estimate that Iran processes billions of dollars in cryptocurrency and stablecoin transactions each year. According to Reuters, the annual volume is projected to be between $7.8 billion and $10 billion in 2025, as domestic market participants and state-backed entities seek avenues to bypass international sanctions.

Meanwhile, research from Chainalysis suggests that the Iranian state, including the Islamic Revolutionary Guard Corps (IRGC), is responsible for more than 50% of the nation’s cryptocurrency inflows. Tether is reported to have served as a primary vehicle for these stablecoin transactions.

The Global Stablecoin Landscape

Currently, stablecoins maintain a global market capitalization of approximately $313.84 billion, with a 24-hour trading volume exceeding $72.23 billion.

Tether’s USDT commands the largest market share, representing over $182 billion in valuation with transaction volumes surpassing $54 billion. Circle’s USDC has also secured a substantial portion of the market, boasting an overall valuation of more than $72 billion and over $14 billion in transaction volume.

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