Tether Freezes $344M in USDT After US Authorities Detect Illicit Funds

_{Photo credit: ddRender / Shutterstock.com}

Tether, the issuer of the world’s largest stablecoin, has frozen $344 million in USDT after several US authorities identified suspected illicit activity linked to two wallets, in one of the company’s largest enforcement actions to date.

Two addresses on the Tron network have since been identified as blacklisted by Tether, preventing further movement of funds after intelligence tied them to unlawful conduct. The action was carried out in coordination with the Office of Foreign Assets Control and other law enforcement organizations in the United States.

Tether said such interventions have become “a routine part of the company’s response to lawful requests from authorities in the U.S. and abroad.”

Tether also emphasized the role of public blockchain transparency in helping law enforcement, saying that a “visible trail” means transactions can be monitored, wallets can be flagged, and assets can be frozen in a way that is not possible with cash.

CEO of Tether, Paolo Ardoino, said: 

USDT is not a safe haven for illicit activity. When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively. Recent events have shown what happens when platforms fail to move quickly, enforcement breaks down, users are exposed, and trust erodes. Our approach is different. We combine blockchain transparency with real-time monitoring and direct coordination with law enforcement to stop funds before they can move.

Tether’s cooperation with law enforcement now spans more than 340 agencies across 65 countries. To date, it has supported over 2,300 investigations and frozen more than $4.4 billion in assets.