According to a new 28-page report by Senator Richard Blumenthal, Tether lies at the center of a shadow banking network. Of the 757 wallets involved in financing Iranian terrorism, 87% predominantly used USDT for transactions. The regime used the stablecoin because of its high liquidity compared with other alternatives. The investigation also found that Tether repeatedly failed to freeze and block wallets. Blumenthal also points to Tether’s ties to the Trump administration. In particular, Commerce Secretary Howard Lutnick previously headed Cantor Fitzgerald. The company, which serves as custodian of Tether’s assets, was later led by his sons. Blumenthal called on Attorney General Todd Blanche and Treasury Secretary Scott Bessent to investigate the violations.