Senator Richard Blumenthal released a staff report on September 28, 2026, examining Tether, the dominant stablecoin operator. The “Tethered to Terrorism” report analyzed 846 wallets designated by OFAC and Israel’s National Bureau for Counter Terror Financing, finding that 84% of flagged wallets transacted primarily in USDT. Two sanctioned Iranian oil smugglers allegedly moved over $603 million in USDT through networks connected to Hezbollah and Houthi factions. Cantor Fitzgerald holds a 5% equity stake in Tether while managing a substantial portion of the company’s US reserves, estimated above $100 billion. Blumenthal requested Treasury Secretary Scott Bessent and Attorney General Todd Blanche to launch investigations into sanctions compliance and anti-money laundering, while Tether claims it froze approximately $550 million in Iran-affiliated USDT during 2026.
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