Key Insights
- Tether froze about $39.27 million in USDT across 10 Tron wallets linked by MistTrack to Xinbi Guarantee.
- Xinbi’s parent company has faced U.K. sanctions since March over alleged links to Southeast Asian scam centers.
- USDT retained about 60% of the stablecoin market as its circulating supply reached $183.4 billion.
Tether froze about $39.27 million in USDT across 10 Tron addresses on Sept. 8. Blockchain analytics firm MistTrack linked the wallets to Xinbi Guarantee.
The freeze came as Tether continued restricting addresses linked to alleged criminal activity. Xinbi’s parent company has also faced U.K. sanctions since March.
Tether Freeze Targets Xinbi Linked USDT Wallets
The move by Tether marks the latest instance of the firm cracking down on the use of its stablecoins for illicit activities. The firm has been actively blacklisting addresses and freezing funds at the request of both law enforcement and
According to BlockSec data, Tether has blacklisted 376 addresses in the past 30 days while freezing $169.71 million USDT across Tron and Ethereum as a result.
In the past six months, it has frozen $1.44 billion worth of funds, the majority of which are on the Tron network. It also blacklisted 2,743 addresses in that period.
The crackdown is part of what CEO Paolo Ardoino insists the USDT will not be a haven for illicit activity. Back in April, he stated that once Tether identifies a credible link with sanctioned entities or criminal networks, it will act immediately.
Interestingly, its decisiveness in freezing funds, likely linked to illicit activities, recently landed it in hot water. The stablecoin issuer is facing a lawsuit from two Thai businessmen over the freezing of $42.4 million in USDT without legal authority.
Tether reportedly acted on an informal request for a US law enforcement agent without any court order or warrant. Although a judge later issued a seizure warrant three months later, the plaintiff claimed the warrant could not apply retroactively.
This lawsuit appears not to have deterred Tether. The USDT issuer is seeking to bolster its compliance credentials and has recently engaged KPMG to conduct an audit.
USDT Dominance Holds Near 60% of Stablecoin Market
USDT remains the largest stablecoin despite relatively modest recent supply growth. DeFiLlama placed USDT market capitalization near $183.37 billion on Sept. 9. Its share of the broader stablecoin market stood near 60.1%.
Total stablecoin capitalization reached approximately $305.2 billion. The market grew about 1.5% over the previous 30 days.
USDT supply increased only about 0.15% during that period. USD Coin rose about 2.9% to approximately $74.37 billion.
Together, USDT and USDC accounted for roughly 84.5% of total stablecoin capitalization.
Ripple USD recorded substantially faster percentage growth. RLUSD supply reached about $2.43 billion after climbing roughly 53.5% during the previous month.
That made RLUSD one of the faster-growing large stablecoins. However, percentage growth from a smaller base does not challenge USDT’s market leadership.
GENIUS Act implementation provides the next U.S. regulatory catalyst. Treasury has already proposed multiple rules under the stablecoin law during 2026.
The department said the law’s main issuance restrictions are expected to take effect Jan. 18, 2027. At that point, payment stablecoin issuers operating in the U.S. will generally require an approved federal or state regulatory pathway.
That framework could reshape competition among regulated stablecoins. For Tether, enforcement activity and compliance controls will remain relevant as USDT continues controlling about three-fifths of global stablecoin capitalization.
This article is for informational purposes only and should not be considered legal, financial, or investment advice. Readers should conduct independent research before making financial decisions.
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