Tether Freezes $344 Million in USDT Stablecoins Flagged for Illicit Activity

Tether froze more than $344 million in USDT throughout two Tron addresses Thursday in coordination with U.S. authorities, marking one of many stablecoin issuer’s largest compliance actions on report.

Whereas Tether didn’t title the community of the frozen funds, blockchain safety agency PeckShield identified the blacklisted addresses as TNiq9…QZH81 and TTiDL…pjSr9, holding roughly $213 million and $131 million respectively. Decrypt requested Tether if it will probably affirm the addresses recognized on Tron, however didn’t instantly obtain a response.

The freeze motion adopted data allegedly linked to sanctions evasion, prison networks, or different illicit exercise, per Tether’s assertion. The stablecoin issuer’s compliance group labored with the Workplace of International Property Management and different U.S. legislation enforcement businesses to implement the USDT pockets restrictions.

“USDT isn’t a protected haven for illicit exercise,” mentioned Tether CEO Paolo Ardoino, in an announcement. “When credible hyperlinks to sanctioned entities or prison networks are recognized, we act instantly and decisively. Latest occasions have proven what occurs when platforms fail to maneuver shortly, enforcement breaks down, customers are uncovered, and belief erodes.”

“Our method is completely different,” he continued. “We mix blockchain transparency with real-time monitoring and direct coordination with legislation enforcement to cease funds earlier than they’ll transfer. That’s a accountability we take critically as one of many largest issuers available in the market.”

The freeze underscores Tether’s increasing compliance infrastructure, which now encompasses partnerships with greater than 340 legislation enforcement businesses throughout 65 international locations. The stablecoin issuer mentioned it has supported over 2,300 circumstances globally and frozen greater than $4.4 billion in property general—together with $2.1 billion tied particularly to U.S. authorities.

Thursday’s motion follows a sample of large-scale Tether freezes coordinated with U.S. authorities. In November 2023, the corporate froze about $225 million in USDT linked to a Southeast Asia human-trafficking and pig butchering rip-off investigation. In January 2026, Tether froze roughly $182 million throughout 5 Tron wallets in one other motion.

These freezes sometimes contain the Workplace of International Property Management, the U.S. Treasury Division company that administers and enforces financial and commerce sanctions. The growing frequency and scale of such actions mirror each the rising use of stablecoins in illicit finance and Tether’s efforts to take care of regulatory compliance.

Tether’s newest motion follows a pair of high-profile crypto undertaking hacks which were linked by investigators to North Korean hackers: the $285 million Drift Protocol attack, and $292 million Kelp DAO exploit. 

USDC stablecoin issuer Circle confronted criticism following the Drift Protocol hack for not taking motion to freeze funds linked to the assault. The agency defended its inaction, saying that it will probably solely freeze funds when recognized by legislation enforcement or required by way of court docket orders.

“When Circle freezes USDC, it isn’t as a result of we now have determined, unilaterally or arbitrarily, that somebody’s property ought to be taken from them. It’s as a result of the legislation requires us to behave,” mentioned Circle Chief Technique Officer Dante Disparte, in a blog post.

A category motion lawsuit has since been filed against Circle in relation to the Drift Protocol funds. Drift mentioned final week that it will dump USDC in favor of USDT, as a part of a Tether-backed recovery plan that can present $148 million in funding to assist make customers complete.