Reports have emerged indicating that Iran’s central bank may have been involved in extensive transactions with Tether, a cryptocurrency strongly endorsed by Nigel Farage. An investigation by Elliptic, a cryptocurrency analytics firm, has traced over $507 million worth of Tether stablecoins—cryptocurrency designed to maintain parity with the US dollar—potentially funneling through accounts seemingly linked to the Iranian central bank.
This activity suggests a deliberate strategy to circumvent the global banking network, potentially enabling trade or reinforcing the value of the Iranian rial amidst ongoing economic turmoil. This revelation comes against the backdrop of severe public dissent in Iran, where the regime’s harsh suppression of protests has resulted in numerous casualties. Farage’s association with Tether raises significant questions, particularly considering his plans to broach the topic during a meeting scheduled with Bank of England Governor Andrew Bailey.
On LBC radio, Farage remarked on Tether’s status as a pivotal instrument within the cryptocurrency landscape, projecting its valuation could soar to $500 billion. He criticized Bailey for regulatory constraints affecting cryptocurrencies, emphasizing the need for the UK to align more closely with the US approach, where previous efforts to tighten regulations on digital currencies have been relaxed.
Adding to the complexity of the situation, Christopher Harborne, a tech investor and significant donor to Farage’s Reform UK party, holds a stake in Tether. Harborne’s legal representatives refuted claims linking him to any illicit activities associated with the company, labeling suggestions of his involvement in Iran’s dealings as “baseless drivel.”
Reform UK defended the use of Tether, stating it is employed by many organizations globally, and reiterated their commitment to legal compliance concerning donations. The statement underscored their support for the Iranian populace’s quest for freedom.
The demand for Tether’s stablecoin—known as USDT—has surged, with the company reportedly generating annual profits of around $13 billion, surpassing even those of major corporations like McDonald’s. Some of this demand appears to arise from illicit activities, particularly as Iranian authorities resort to cryptocurrency amidst extensive sanctions that hinder conventional financial operations, allowing them to establish a parallel system for currency exchange and capital inflow.
Previous disclosures by Israeli intelligence cited crypto accounts allegedly linked to Iran’s Revolutionary Guards, drawing attention to the difficulty Iranian officials face in maintaining secrecy in their transactions. These concerns echoed a recent post from an Iranian businessman on social media, which inadvertently disclosed several crypto account numbers purportedly utilized by Iran’s central bank.
Elliptic’s research indicates a “high level of confidence” in the connection between over 50 accounts and the Iranian central bank, although a Tether representative did not specifically address the association with Iranian officials. The spokesperson stated that Tether enforces a strict policy against criminal use of its services and works closely with law enforcement to address accusations of illicit usage.
While the investigation has identified accounts reportedly linked to the Iranian regime, many seem to remain active despite past freezes imposed on accounts tied to the Revolutionary Guards. The growing nexus between cryptocurrencies and state actors underscores the evolving landscape of digital finance and its implications for global governance and financial regulation.
