Massive USDt Freeze: Tether Targets Illicit Crypto Use
Tether, the company that issues USDt, the biggest stablecoin in the world, is still taking strong action against illicit activity in the cryptocurrency space. In this regard, Tether has frozen digital assets on the Tron Network valued at more than $12.3 million. Tether has not made a public comment, but the freeze might be the result of worries about possible anti-money laundering (AML) or sanctions violations.
Tether enforces a strict wallet-freezing policy to combat money laundering, nuclear proliferation and terrorist financing and is also aligned with the OFAC Specially Designated Nationals (SDN) List,
Tether
Tether Joins Sanctions Fight, Halts $27M in USDT on Garantex
The sanctions list maintained by the US Treasury’s Office of Foreign Assets Control (OFAC) is in line with the policy. When Tether froze $27 million in USDT on the Garantex cryptocurrency exchange on March 6, it sparked renewed interest in its asset-freezing capabilities.
Claiming that Tether had joined the battle against the Russian cryptocurrency market and blocked wallets valued at over 2.5 billion rubles ($27 million), the exchange suspended operations that same day. OFAC was the first body to impose sanctions on Garantex in April 2022, alleging that the exchange had ignored AML and other legal obligations.
Is Tether the Hero or Villain? $126M Frozen Amid Decentralization Debate
Tether’s asset-freezing feature has been attacked by certain proponents of decentralization, yet it has stopped criminals from washing hundreds of millions of dollars’ worth of cryptocurrency. According to a January 2025 report, the T3 Financial Crimes Unit (FCU), led by stablecoin issuer Tether, the Tron Network, and TRM Labs, froze $126 million worth of USDT in its first six months.
In November 2023, Tether blacklisted funds totaling more than $374,000. ZachXBT further claims that three of the four stablecoin producers have blacklisted an additional $3.4 million connected to a group of addresses connected to Lazarus.
For more up-to-date crypto news, you can follow Crypto Data Space.
