Tether Freezes $344 Million in USDT Stablecoins Flagged for Illicit Exercise – Decrypt

Tether froze greater 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 file.

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

The freeze motion adopted data allegedly linked to sanctions evasion, legal networks, or different illicit exercise, per Tether’s assertion. The stablecoin issuer’s compliance workforce labored with the Workplace of International Belongings Management and different U.S. regulation enforcement companies 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 legal networks are recognized, we act instantly and decisively. Current occasions have proven what occurs when platforms fail to maneuver rapidly, enforcement breaks down, customers are uncovered, and belief erodes.”

“Our strategy is totally different,” he continued. “We mix blockchain transparency with real-time monitoring and direct coordination with regulation enforcement to cease funds earlier than they will transfer. That’s a accountability we take critically as one of many largest issuers out there.”

The freeze underscores Tether’s increasing compliance infrastructure, which now encompasses partnerships with greater than 340 regulation enforcement companies throughout 65 international locations. The stablecoin issuer mentioned it has supported over 2,300 instances 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 usually contain the Workplace of International Belongings 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 keep up regulatory compliance.

Tether’s newest motion follows a pair of high-profile crypto venture hacks which have been linked by investigators to North Korean hackers: the $285 million Drift Protocol assault, 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 may possibly solely freeze funds when recognized by regulation enforcement or required by court docket orders.

“When Circle freezes USDC, it isn’t as a result of we’ve got determined, unilaterally or arbitrarily, that somebody’s property must be taken from them. It’s as a result of the regulation requires us to behave,” mentioned Circle Chief Technique Officer Dante Disparte, in a weblog put up.

A category motion lawsuit has since been filed in opposition to 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 restoration plan that may present $148 million in funding to assist make customers entire.