According to Cointelegraph, stablecoin issuer Tether has frozen approximately $4.2 billion in USDT tokens linked to suspicious criminal activities over the past three years. The report states that the majority of these frozen funds were restricted starting in 2023, aligning with increased scrutiny by regulators and law enforcement on cryptocurrency-related fraud and sanctions evasion. Tether can freeze tokens by blacklisting wallet addresses directly on the blockchain upon regulatory request. On Tuesday, Tether announced it assisted the U.S. Department of Justice in seizing nearly $61 million in USDT tied to "pig butchering" scams. Earlier this month, the company also froze approximately $5.44 billion in cryptocurrency at the request of Turkish authorities, linked to alleged illegal online gambling and money laundering activities.
Tether Freezes $420M in USDT Linked to Illegal Activities Over Three Years
TechFlowShare
Summary
Tether has frozen $420 million in USDT linked to illegal activities over three years, according to on-chain news. Most of the funds were restricted in 2023 amid heightened regulatory scrutiny. The company froze $61 million in USDT for the U.S. Department of Justice in a cryptocurrency case involving a "pig butchering" scam. Earlier this month, Tether also froze $544 million at the request of Turkish authorities, tied to online gambling and money laundering.
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