Tether Freezes Over Half Billion in USDT Amid Illicit Activity Crackdown
Tether, the issuer of the popular stablecoin USDT, has frozen more than $514 million in tokens over the past 30 days. According to BlockSec's on-chain data, 370 addresses across Ethereum and Tron had their funds locked, with the bulk being on the Tron network.
The freeze is part of Tether's efforts to combat illicit activity, with the company having frozen $1.26 billion in USDT since 2025. BlockSec's analysis found that only 3.6% of blacklisted addresses were subsequently removed, indicating that freezes are rarely reversed once applied.
Tether has been working closely with law enforcement agencies and regulatory bodies to freeze funds linked to sanctions evasion and scams. The company disclosed in February that it had frozen approximately $4.2 billion in tokens over three years due to links to illicit activity.
The growing frequency of freezes has sparked debate within the industry about the limits of authority for centralized stablecoin issuers like Tether. Some protocols have used upgradeable contracts and admin controls to halt or recover funds following exploits, raising questions about the balance between intervention and decentralization.