Tether CEO Says Iran-Linked Stablecoin Volume Fell 94% After Wallet Freezes
Summary
- Tether said its wallet freezes led to a 94% drop in Iran-linked stablecoin trading volume.
- CEO Paolo Ardoino said Tether has been freezing crypto wallets tied to sanctioned entities an average of four weeks before official designations.
- Tether said the preemptive action led to a decline in Iran-linked stablecoin trading volume and highlighted its response record on sanctions compliance.
Forecast Trend Report by Period
Tether, the issuer of the world’s largest stablecoin, USDT, said trading volume in Iran-linked stablecoins fell 94% after the company froze wallets tied to sanctioned entities.
On Oct. 20, Chief Executive Officer Paolo Ardoino made the claim as he pushed back against recent analysis by U.S. Senator Richard Blumenthal on Tether’s sanctions compliance.
Ardoino said Tether has proactively frozen crypto wallets linked to sanctioned entities. Since 2023, he said, the company has frozen related wallets an average of four weeks before U.S. and Israeli authorities formally designated them for sanctions.
He added that Tether also moved ahead of blockchain analytics firm Chainalysis in most cases. According to Ardoino, Tether froze the wallets in 99% of relevant cases before Chainalysis identified them as problematic.
Tether says the preemptive action led to a drop in Iran-linked stablecoin trading volume. The remarks appeared intended to highlight the company’s sanctions-compliance efforts as questions over Tether’s compliance have emerged in U.S. political circles.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.