Hassan Maishera
TL;DR
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Leading stablecoin issuer Tether has frozen $344 million across two addresses in coordination with OFAC and US law enforcement.
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With the freeze, the wallets would be unable to move funds until cleared.
Tether Aids US Law Enforcement in Freezing $344M in USDT Linked to Illicit Activity
Tether, issuer of the largest stablecoin USDT, said on Thursday that it has helped freeze $344 million in crypto assets across two blockchain addresses in coordination with the OFAC and U.S. law enforcement agencies.
According to the company, the action was taken after U.S. authorities provided intelligence linking the addresses to illicit activity, allowing Tether to block further movement of funds. The wallets had previously been blacklisted due to suspected ties to sanctions evasion and other criminal networks.
“When wallets are identified as connected to sanctions evasion, criminal networks, or other illicit activity, Tether can move to restrict those assets,” the company said in a statement.
Paolo Ardoino, CEO of Tether, emphasized that the company does not tolerate misuse of its stablecoin.
“USDT is not a safe haven for illicit activity. Tether works closely with governments and law enforcement agencies worldwide to freeze assets linked to criminal or sanctioned entities.”
Tether added that it currently collaborates with more than 340 law enforcement agencies across 65 countries, assisting in over 2,300 investigations globally. Of these, more than 1,200 involve U.S. authorities. The company also stated that it has frozen over $4.4 billion in assets to date, including more than $2.1 billion tied specifically to U.S. law enforcement cases.
The ability to track and freeze funds is enabled by the transparent nature of public blockchains, which allow investigators to trace wallet activity and flag suspicious transactions in real time.
This latest development comes at a time when Tether’s major rival, Circle Internet Financial, is being sued by a group of investors in Drift Protocol following the $280 million exploit on April 1, one of the largest hacks in decentralized finance (DeFi) history.
The class action lawsuit, filed by law firm Gibbs Mura, accuses Circle of failing to freeze the stolen USDC involved in the attack.
