Svmuu reported that Tether has announced freezing over $344 million in USDT across two wallet addresses in support of the U.S. government. This freeze was carried out in coordination with the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) and U.S. law enforcement agencies to prevent further movement of funds.
The freeze was based on information provided by multiple U.S. law enforcement agencies, linking these addresses to illegal activities. Tether stated that it takes freezing measures when wallet addresses are associated with sanctions evasion, criminal networks, or other illicit activities. This has now become Tether's standard response to legitimate requests from U.S. and global law enforcement agencies.
Tether adheres to a zero-tolerance policy and firmly opposes criminal activity conducted through its financial products, including USDT. The company has long followed OFAC's guidelines regarding the "Specially Designated Nationals" (SDN) list. It works closely with over 340 law enforcement agencies worldwide to help identify and freeze assets tied to illegal activities or wrongdoers, preventing further transfers.
Tether has supported over 2,300 cases globally, including more than 1,200 cases related to U.S. law enforcement agencies. The total value of frozen assets exceeds $4.4 billion, with $2.1 billion of that linked to U.S. law enforcement investigations.
Paolo Ardoino, CEO of Tether, stated: "USDT is by no means a safe haven for illegal activities. When there is credible evidence linking addresses to sanctioned entities or criminal networks, we act immediately. Recent events have shown what happens when platforms fail to act swiftly, enforcement falls short, users are exposed, and trust is lost. Our approach is different. We combine blockchain transparency, real-time monitoring, and direct coordination with law enforcement to prevent fund flows. This is a responsibility that comes with being one of the largest issuers in the market, and we take it very seriously."
This action is part of Tether's cooperation with U.S. law enforcement. The U.S. Department of Justice has previously acknowledged Tether's support in enforcement operations, leading to the successful seizure of nearly $61 million and approximately $225 million in funds from "pig butchering" scams. These cases demonstrate that digital assets on public blockchains are not beyond reach when issuers and law enforcement agencies work closely together.