Tether Freezes Over $344M in USDT Amid Rising Scrutiny of Stablecoins

Tether has frozen over $344 million in USDT tokens across two Tron blockchain wallets after U.S. authorities flagged them for suspected links to illicit activity.

The freeze is part of a larger effort by Tether to cooperate with law enforcement, having already frozen more than $4.4 billion in assets overall since it began working with authorities.

Tether's CEO Paolo Ardoino said the company acts quickly when credible links to sanctioned entities or criminal networks are identified, combining blockchain transparency with real-time monitoring and direct coordination with law enforcement to stop funds before they can be moved.

The freeze arrives as scrutiny of stablecoin issuers' compliance obligations has intensified, following a recent warning from the Financial Action Task Force that stablecoins are increasingly being used for sanctions evasion and money laundering.