- 13:50
Hezbollah’s financing continues to raise serious concerns. A clash is unfolding between international law and the militia, which is using multiple strategies to protect its resources. According to several sources, the group has even turned to digital dollars, particularly Tether, to secure its financial survival.
Last week, a US Treasury delegation on an exploratory mission to Lebanon revealed that the Iran-backed group may have received at least one billion dollars in cash, delivered across land and airport borders, as well as through digital wallets and cryptocurrency transactions.
This sum is especially significant in Lebanon, where the state budget totals less than four billion dollars.
Lebanon currently lacks a specific legal framework regulating cryptocurrency markets. The only restriction is a 2018 ruling by the Capital Markets Authority, which prohibits financial institutions from holding such assets.
The use of cryptocurrencies, particularly Tether, raises pressing questions about the traceability of transactions, especially since it functions as a digital dollar in crypto trading.
USDT, a Parallel Dollar
Hezbollah is reported to have turned to Tether (USDT), a cryptocurrency classified as a stablecoin and known for its stability. Unlike typical digital currencies, USDT is backed by financial reserves such as US dollars or Treasury bills, ensuring its value remains pegged to the greenback. One USDT is, in principle, equal to one dollar.
Today, USDT is the most widely traded stablecoin in the world, with daily volumes reaching up to 190 billion dollars. In countries facing crises or international sanctions, often linked to money laundering or terrorism financing, it has emerged as a parallel dollar. It provides the advantages of the US dollar without relying on traditional banking channels or handling physical cash.
Accessible via a simple mobile app, USDT bypasses dollar shortages and banking restrictions. Thanks to blockchain technology, transfers are instant, peer-to-peer, and low-cost.
For example, a Lebanese merchant can receive payment in USDT from an Iraqi client within minutes, while a Turkish student can receive financial support from Europe almost instantly.
Money Changers in the Spotlight
Local money changers have drawn the attention of regulatory authorities because, in Lebanon as in other crisis-hit countries on the FATF grey list, USDT conversion is largely conducted through private exchange offices, over-the-counter, or peer-to-peer. Users send USDT from their wallets and receive cash dollars in return. This system is fast and anonymous and entirely operates outside the traditional banking network.
The cleanest way to re-enter the banking system is through cryptocurrency exchange platforms such as Binance, Coinbase, Kraken, ByBit, or OKX. The process is straightforward: transfer USDT to one of these platforms, then withdraw dollars to a bank account, card, or PayPal account, depending on the options available.
This method is particularly popular among frequent importers and exporters.
Traceability Is Possible but Not Automatic
Tether operates on multiple blockchains, including Ethereum (ERC-20), Tron (TRC-20), Solana, and others, which are public electronic ledgers considered virtually tamper-proof. Every transaction on these networks is visible and can be tracked using tools such as Etherscan or Tronscan. In theory, this makes the flows traceable.
In practice, traceability depends on the ability to link an address to a real individual. Blockchain addresses are pseudonymous, so it is possible to monitor fund movements without identifying their owners. To lift this veil, authorities rely on centralized platforms that typically require identity verification, as well as advanced blockchain analysis techniques. The US Treasury, for example, combines these analyses with data from regulated platforms to trace transactions back to specific individuals.
Oversight is increasingly transnational. The US Treasury closely works with Europol, Interpol, and other international agencies to monitor stablecoin flows, whose use is rapidly expanding worldwide.
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