Central Bank of Iran’s Acquisition of USDT
In a significant move to bolster the Iranian rial amidst ongoing international sanctions, the Central Bank of Iran (CBI) reportedly secured $507 million worth of Tether’s USDT stablecoin over the past year. This acquisition was unearthed by Elliptic, a blockchain analysis firm based in the UK, which traced the cryptocurrency wallets utilized by Iran’s central bank for these transactions.
Details of the Transactions
According to Elliptic, CBI purchased USDT through two separate transactions in April and May 2022, using UAE dirhams as payment. Insights from leaked documents suggest that the purchases were facilitated by an entity named Modex, which may operate as a cryptocurrency broker willing to work with Iranian authorities. Tom Robinson, co-founder and chief scientist of Elliptic, noted that while the documents provide a solid lead on the wallet network used by the CBI, other over-the-counter (OTC) brokers could also be engaged in such dealings.
Impact of Cyberattacks and Fund Diversification
The detailed analysis from Elliptic indicates that the $507 million figure likely represents a minimal estimate since it only accounts for wallets that could be confidently connected to the central bank. The research further elaborates that once acquired, a majority of the USDT was funneled to Nobitex, Iran’s leading cryptocurrency exchange. However, following a significant cyberattack in June 2025, which saw over $90 million in crypto stolen from Nobitex by pro-Israel hackers, the strategy shifted. In the aftermath, CBI wallets transferred USDT to a cross-chain bridge service that converted the tokens from TRON to Ethereum, resulting in diversified digital asset transactions across various decentralized exchanges until the end of 2025, eventually draining the funds from wallets connected to the CBI. Robinson confirmed that no USDT remains in the directly linked wallets, although he acknowledged that the central bank could possess undisclosed alternative wallets.
Strategic Motivations Behind USDT Acquisition
Elliptic’s findings underscore the possible motivations behind Iran’s strategic acquisition of USDT. The firm speculates that one of the key objectives was to inject US dollar liquidity into the domestic market, thereby stabilizing the rial’s exchange rate. Additionally, the USDT could serve as a tool for Iran to engage in international trading, circumventing traditional financial channels that are inaccessible due to sanctions. The report indicates that by utilizing USDT as a substitute for conventional dollar accounts, Iran aims to establish a resilient financial framework shielded from U.S. oversight.
Concerns Over Sanctions Enforcement
While highlighting Iran’s maneuvering within the cryptocurrency realm to evade sanctions, Elliptic cautions that the transparency embedded in stablecoins like USDT may actually enhance sanctions enforcement measures. Tether, the issuer of USDT, is reported to have taken action last year by disabling wallets associated with the CBI, freezing approximately $37 million in assets as part of its commitment to combat illegal usage of its tokens. Tether affirmed its strict zero-tolerance policy towards illicit activities and detailed its extensive collaboration with over 310 law enforcement agencies globally, successfully freezing upwards of $3.8 billion linked to criminal activity.
