US Senators Raise Alarm Over the Use of Tether to Bypass International Sanctions

Senators have sent letters to various departments regarding the possible use of Tether’s stablecoin by Russia, Iran, and North Korea to circumvent US sanctions.

The USDT Stablecoin Under Scrutiny

According to official documents cited by The Wall Street Journal, Senators Elizabeth Warren and Roger Marshall have raised significant concerns within the Biden administration. At the heart of the concerns is the potential use of the USDT stablecoin by Russia, Iran, and North Korea, which is causing worries.

A Tool for Bypassing International Sanctions

USDT, a cryptocurrency pegged to the US dollar, is purportedly being used by Russian companies to evade US sanctions and acquire components for drones and other equipment abroad. This is a major issue, prompting senators to question the Department of Defense and the Biden administration about their stance on the Treasury’s request for new powers.

The Need to Control the Use of Cryptocurrencies

It is worth noting that in April, Treasury Undersecretary Wally Adeyemo expressed concern about the increased use of cryptocurrencies by organizations such as Hamas, North Korea, and the Russian military-industrial complex. These activities have led to a clear demand for approval of new powers from Congress.

Tether’s Promise of Cooperation

On the other hand, “Tether has repeatedly stated that it is cooperating with US authorities and, if necessary, is prepared to freeze wallets associated with organizations using the stablecoin to bypass sanctions.” Recently, the company’s executives have pledged to block addresses sanctioned by the Office of Foreign Assets Control. It will be crucial to monitor how the company’s actions evolve in the current context, where the use of cryptocurrencies in circumventing international economic sanctions raises many critical questions.