Tether Freezes $4.2 Billion in USDT Linked to Illicit Activity Over Three Years

Tether has frozen approximately $4.2 billion worth of USDt over the past three years in connection with suspected criminal activity. Most of the blocked tokens were restricted after 2023, as global regulators and law enforcement agencies increased pressure on crypto platforms to curb fraud and sanctions evasion.

USDt remains the largest stablecoin by market capitalization, with more than $180 billion in circulation, up significantly from roughly $70 billion three years ago. Tether has the technical ability to blacklist wallet addresses on-chain, effectively preventing the movement of flagged tokens when requested by authorities.

Cooperation With Law Enforcement and Supply Trends

Recent actions include assisting the U.S. Department of Justice in freezing nearly $61 million tied to online investment scams. The company has also worked with international authorities on cases involving alleged money laundering and illegal betting.

Meanwhile, USDt’s circulating supply has declined in recent months, reflecting short-term liquidity adjustments rather than a sustained drop in demand, according to company statements.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.