Is USDT Sanctioned?

The honest answer on USDT and sanctions.

TL;DR

TL;DR: Tether (USDT) itself is not on the SDN list. But specific addresses and entities associated with sanctions evasion are - and a USDT transfer to a sanctioned wallet is prohibited like any other transaction.

The distinction

The token is not the target; the counterparty is. OFAC designates addresses and entities, not tokens. A USDT payment to a designated wallet is a prohibited transaction regardless of the asset class.

The practical screen

Screen the destination wallet before any USDT transfer - the same screen as any other token. The rail does not change the obligation; issuer controls are a backstop, not your compliance program.