Tether CEO Disputes Senate Claims Over Iran Sanctions Compliance

Ardoino’s defense, posted Oct. 19, argues that the company’s internal enforcement often outpaces regulatory action. He contends that for 99% of investigated addresses, Tether applied freezes before Chainalysis had even assigned them illicit labels. The executive also credited Tether’s collaboration with law enforcement for a reported 94% decline in Iran-linked stablecoin volumes, framing the reduction as a direct result of the issuer’s proactive compliance measures.

These assertions directly counter a report from the Senate Permanent Subcommittee on Investigations, which alleged that 84% of 846 identified Iran-connected wallets relied almost exclusively on USDT. Senator Blumenthal has since formally requested that Treasury Secretary Scott Bessent and Attorney General Todd Blanche launch federal probes into Tether’s adherence to the Bank Secrecy Act and the International Emergency Economic Powers Act. The Senate inquiry highlighted specific delays, notably a 2023 case involving Hezbollah-linked addresses where, according to investigators, over $34 million in USDT moved before Tether finalized its block in March 2024.

While Ardoino maintains that Tether’s performance exceeds industry standards, the company has not released an independently audited dataset to substantiate the specific timing or volume figures cited in his response. The conflict highlights an ongoing tension between stablecoin issuers and federal regulators regarding the speed of enforcement in a decentralized ecosystem.