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The Obama administration is facing criticism for paying Iran $1.7 billion in taxpayer funds as part of what critics described as a ransom bound up in a controversial hostage trade designed to secure the release of five Americans long held by Iran, according to conversations with administration officials and experts critical of the agreement.
Hereâs what happened. 1  The Shah of Iran made a deal for the US to buy some airplanes. He paid in advance. 2  The Shah was overthrown; the US kept the money and didnât hand over the airplanes to the Shahâs successor, the Ayatollah. 3  The thing went to international arbitration for many years.