Tether Freezes $344M in USDt, Rekindling Debate Over Crypto Control

Tether has frozen more than US$344 million (AU$481.6 million) in USDt across two wallets, acting in coordination with US law enforcement authorities in one of its largest compliance interventions to date. The action targeted two addresses on the Tron network, which blockchain analysts linked to holdings of roughly US$213 million (AU$298.2 million) and US$131 million (AU$183.4 million), respectively.

The company said the restrictions were applied following information connected to suspected unlawful conduct, including potential links to sanctions evasion or criminal networks. Tether added that it routinely freezes wallets associated with illicit activity when credible evidence is identified.

Related: FDIC Moves to Rein in Stablecoins with New Rule Proposal Under GENIUS Act

Inside Tether’s Response Model

Chief executive Paolo Ardoino stated that USDt is not intended to serve as a refuge for illegal funds and emphasised that the firm responds quickly when risks are detected. 

We combine blockchain transparency with real-time monitoring and direct coordination with law enforcement to stop funds before they can move. That’s a responsibility we take seriously as one of the largest issuers in the market.

Paolo Ardoino, CEO, Tether

The freeze highlights Tether’s expanding compliance efforts, which include cooperation with more than 340 law enforcement agencies across 65 countries. In total, the firm has supported over 2,300 investigations and frozen more than US$4.4 billion (AU$6.16 billion) in assets globally, including over US$2.1 billion (AU$2.94 billion) linked to US authorities.

The move has reignited debate within the crypto sector about the role of centralised issuers, with some arguing that such interventions challenge the principle of user control over digital assets. Others, however, maintain that stablecoin providers have a responsibility to assist authorities in preventing illicit financial activity.

Related: Tether Backs $134M Stablecoin Bet to Bring Crypto Into Everyday Use

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