Tether froze $344 M in USDT across two addresses after several American agencies provided the company with information linking the wallets to illegal activities. The company did not disclose the specific names of the agencies that initiated the request or the exact nature of the violations. It is only known that the addresses were identified as connected to sanctions evasion or criminal networks.
An official press release states that the company interacts with over 340 law enforcement agencies in 65 countries and participates in more than 2,300 investigations worldwide, over 1,200 of which involve American entities. The total volume of assets frozen over time has exceeded $4.4 B, with $2.1 B of that amount frozen at the request of US authorities.
“USDT is not a safe haven for illicit activity,” emphasized Paolo Ardoino, the CEO of Tether.
He also noted that the company monitors transactions in real time and coordinates its actions with law enforcement directly during active investigations, rather than after criminals have already withdrawn the money.
Previous Precedents
The US Department of Justice has previously publicly noted Tether’s role in two high-profile cases: the seizure of about $61 M and roughly $225 M linked to pig butchering fraud. The current freeze follows the same logic — a public blockchain allows authorities to track the movement of funds and stop them before withdrawal, which cash fundamentally cannot offer.