US senators warn of countries using Tether to circumvent sanctions

Senators sent letters to various departments about Russia, Iran and North Korea using Tether’s stablecoin, presumably to evade U.S. sanctions.

As The Wall Street Journal (WSJ) reported, citing official documents, Senators Elizabeth Warren and Roger Marshall asked the Biden administration several clarifying questions regarding the possible use of the USDT stablecoin by Russia, Iran and North Korea.

According to the document, stablecoin USDT, backed by the US dollar, allowed Russian companies to bypass sanctions and purchase components for drones and other equipment abroad.

Upon this development, senators asked whether the Ministry of Defense and the Joe Biden administration supported the Treasury Department’s request for new authority.

In early April, Treasury Deputy Secretary Wally Adeyemo said that the active use of cryptocurrencies by Hamas, North Korea and the Russian military-industrial complex led to the need for Congress to approve new powers.

Tether has repeatedly stated that it is cooperating with US authorities and is ready to freeze wallets linked to organizations using the stablecoin to evade sanctions if necessary.

In late April, Tether officials vowed to block addresses approved by the Office of Foreign Assets Control (OFAC). The news surfaced after media reported that the Venezuelan state oil company was using the USDT stablecoin to bypass US restrictions.