Iran Acquired $507M in USDT to Evade Sanctions: Elliptic

Iran’s Central Bank (CBI) has reportedly acquired at least $507 million in Tether’s USDT stablecoin. The decision is viewed as an effort to evade international sanctions imposed on the country. Notably, the CBI’s purchase of USDT is part of a larger strategy to facilitate international trade.

A report from blockchain analytics firm Elliptic revealed that the transactions were traced using transparent blockchain data. The purchases emphasize how stablecoins can be used to bypass traditional banking barriers. The situation also highlights the difficulties regulators face in monitoring and controlling crypto transactions.

Sanctions Evasion Through Cryptocurrency

The Elliptic report, which cited leaked documents, revealed two USDT purchases made between April and May 2025 by the CBI. The firm further discovered a chain of crypto wallets used by the Iranian government to systematically accumulate USDT.

The CBI’s strategic acquisition of Tether (USDT) represents a calculated move in response to the rigorous sanctions imposed by the United States since 2018. These sanctions have severely restricted Iran’s ability to engage with the global financial system. This limits the nation’s access to essential foreign reserves, hindering economic stability. 

In light of these challenges, Iran is turning to alternative liquidity sources, with USDT serving as a critical means of introducing US dollar liquidity into the local market. The maneuver is intended to bolster the value of the Iranian rial and facilitate international trade. 

Analysis from Elliptic provides insight into the methods that were employed in the acquisition. The report revealed that the CBI used a sophisticated network of crypto wallets across the TRON and Ethereum blockchains to acquire USDT. Initially, these crypto transactions were routed through Nobitex, Iran’s largest cryptocurrency exchange. 

However, following a significant hacking incident in June 2025, the CBI pivoted to using cross-chain bridges. This move helped to enhance transaction security, thereby bypassing potential vulnerabilities.

Regulatory Implications

The CBI’s acquisition of USDT underscores the urgent need for more robust regulatory frameworks governing stablecoin issuers and crypto exchanges. Tether, the company behind USDT, has demonstrated a proactive stance on compliance by freezing assets associated with sanctioned entities.

In June 2025 alone, the exchange froze $37 million in USDT. This action indicates that regulators may ramp up their efforts to closely monitor blockchain activities and enforce compliance measures specifically targeting areas under sanction.

Meanwhile, as the use of cryptocurrencies to evade sanctions comes into sharper focus, critical questions about the effectiveness of current regulatory measures arise. Enthusiasts are optimistic that in the constantly evolving blockchain landscape, both regulators and participants in the crypto industry will quickly adapt to address these emerging challenges. This will ensure strong compliance with international sanctions and effectively mitigate risks.

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