Tether has frozen about $4.2 billion in USDT linked to illegal activity, according to Reuters. Around $3.5 billion of that total has been frozen since 2023. The move shows Tether’s active role in fighting crypto-related crime.
Tether Freezes Billions to Fight Fraud
The frozen funds account for roughly 2.3% of USDT’s $180 billion circulating supply. While Tether has worked closely with the U.S. Department of Justice to target scams.
One example is “pig-butchering” frauds, where criminals trick victims into sending money with fake investment promises. This week, about $61 million in USDT linked to such scams was blocked. Therefore, by taking these steps, Tether aims to protect users and maintain trust in its stablecoin.
Tether Works With Law Enforcement
CEO Paolo Ardoino stressed Tether’s commitment to cooperating with regulators. The company shared a video highlighting the frozen funds alongside his image.
This visual emphasizes the company’s compliance and reinforces its anti-fraud message. Moreover, the collaboration shows how stablecoin issuers can work with authorities to prevent criminal activity.
Effects on USDT and Investors
The freeze did not significantly impact USDT’s market stability. Analysts note that it may even boost confidence among investors.
High-volume traders and institutions could view Tether’s actions as a sign of reliability. Meanwhile, casual users see that the network actively prevents misuse. This move also highlights the importance of transparency and security in the stablecoin ecosystem.
Tether Highlights Compliance and Security
Tether’s recent actions underline the growing focus on regulatory compliance in crypto. As authorities continue to investigate fraud, issuers face more scrutiny.
For users and investors, these proactive steps demonstrate that the platform can stop criminal activity without affecting token functionality. This freeze helps protect the market while maintaining USDT’s role as a widely used stablecoin. This response shows that stablecoin issuers can balance compliance, security and accessibility for all users.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Swan Bitcoin诉讼升级：Tether 挖矿纠纷牵出Cantor Fitzgerald 与 Howard Lutnick
The dispute over Bitcoin mining in the United States continues to escalate, with Swan Bitcoin filing for evidence in the New York court to obtain proof related to Tether. The controversy stems from the breakdown of the partnership between Swan and the joint venture 2040 Energy with Tether, accusing internal executives of misconduct. Meanwhile, Cantor Fitzgerald and its CEO are also involved, with potential links to funds and interests. The case could impact Bitcoin mining models and the stablecoin ecosystem.
GateNews35m ago
Swan Bitcoin exposes Tether mining coup, requests summons for U.S. Secretary of Commerce
Swan Bitcoin requests the summons of Secretary of Commerce Howard Lutnick and Cantor Fitzgerald to support an offshore lawsuit against 2040 Energy. Swan accuses Tether of inciting an "industry coup," leading to the breakdown of its partnership with Tether, and suggests Lutnick may be connected to Tether’s improper conduct. If the court approves the subpoena, it will help reveal relevant communications and financial relationships.
MarketWhisper3h ago
DeepSnitch AI Launching in 7 Days, With $2.5M Banked and 1000x in Sight, as Tether Takes Its Biggest Transparency Step and Institutions Rush In
Tether just hired a Big Four accounting firm for its first-ever full audit of the $184 billion in reserves backing USDT, as Lombard revealed that its Bitcoin Smart Accounts now let institutions earn yield and borrow against BTC without leaving qualified custody. BitGo and Susquehanna launched
CaptainAltcoin10h ago
Bitwise: Circle's Valuation Could Reach $75 Billion by 2030, Analysts Support Stock Price
Despite Circle's stock price falling approximately 20% recently, institutions remain optimistic about its prospects, with valuations projected to reach $75 billion by 2030. Analysts believe the expansion of the stablecoin market and Circle's market share will continue to drive growth, and its influence may be constrained by competitors' compliance processes.
BlockBeatNews17h ago
Tether Pauses $20 Billion Financing Plan, Awaits First Comprehensive Financial Audit Results
Gate News reported on March 25 that, according to Bloomberg, stablecoin issuer Tether Holdings SA has suspended its previously planned $20 billion fundraising round and is currently awaiting the results of its first comprehensive financial audit, with plans to potentially restart fundraising after the audit results are released. According to informed sources, throughout the fundraising process, potential investors and bankers have been urging Tether to improve financial transparency. However, one informed source indicated that some potential investors remain prepared to support the company before the audit results are announced.
GateNews21h ago
