Tether froze more than $344 million in USDT across two addresses in coordination with the U.S. government, the Office of Foreign Assets Control and law enforcement authorities, the company said on Thursday.
In a statement, Tether said the freeze followed information shared by several U.S. authorities about activity tied to unlawful conduct, allowing the company to block the funds before they could be moved further.
The company said wallets linked to sanctions evasion, criminal networks or other illicit activity can be restricted as part of its response to lawful requests from agencies in the United States and abroad.
Enforcement Cooperation Expands
Highlighting the depth of its ties with enforcement agencies, Tether said it works with more than 340 law enforcement bodies in 65 countries and has supported more than 2,300 cases globally, including over 1,200 involving U.S. authorities.
It added that this level of cooperation has resulted in the freezing of more than $4.4 billion in assets, of which more than $2.1 billion was linked to U.S. authorities.
“Tether maintains a zero-tolerance policy toward the criminal use of our financial products, including USDT,” the company said, adding that it has long followed OFAC guidelines related to the Specially Designated Nationals list.
Ardoino Says USDT Is ‘Not a Safe Haven’
Chief Executive Paolo Ardoino said the latest action reflected the company’s approach to acting quickly when wallets are linked to sanctioned entities or criminal networks.
“USDT is not a safe haven for illicit activity,” Ardoino said. “When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively.” He added that Tether combines “blockchain transparency with real-time monitoring and direct coordination with law enforcement to stop funds before they can move.”
The company said public blockchains give investigators something cash cannot, because transactions can be traced, wallets flagged and assets frozen before they are dispersed further.
Earlier U.S. Cases Provide Context
Tether said the latest move forms part of a broader pattern of cooperation with U.S. authorities. It pointed to Justice Department actions involving nearly $61 million and about $225 million tied to pig butchering fraud, saying those cases showed digital assets on public blockchains remain reachable when issuers and law enforcement work together.
The action adds to Tether’s growing role in cross-border crypto enforcement, as stablecoin issuers face continued scrutiny over how they monitor illicit finance risks and respond to law enforcement requests.
Stablecoin Control Debate Returns
Tether’s latest action comes as stablecoin issuers face renewed scrutiny over the degree of control they can exercise over user funds.
In March, blockchain investigator ZachXBT said Circle froze USDC held in 16 hot wallets linked to crypto businesses, disrupting operations and reviving debate across the market over centralization risks.
The dispute followed criticism raised in February by New York Attorney General Letitia James and several district attorneys, who said the GENIUS Act, the U.S. stablecoin law signed in July 2025, gave stablecoins added legitimacy without doing enough to protect fraud victims. The prosecutors argued the law did not require issuers to return frozen funds to victims, even as companies retained control over the assets.
Circle rejected that criticism at the time, saying it complies with U.S. legal and regulatory obligations and has consistently prioritized financial integrity.
While freezes are often presented as a tool to combat illicit finance, they have also raised questions over centralization and the power stablecoin issuers hold over digital assets.
