Tether Warns: USDT Can Be Frozen at Any Moment for Russians

The USDT stablecoin, widely used in Russia, may be frozen at any moment, according to A7A5 crypto creator and PSB Chairman Petr Fradkov.

Fradkov warned that Tether, the issuer of USDT, has the technical capability to block tokens at a specific address. This mechanism has been applied before, including in March 2023 when Tether froze about 23 million USDT linked to the operations of the sanctioned crypto exchange Garantex.

Tether tracks specific wallets and can restrict USDT movement once an address is linked to sanctioned individuals, criminal activity, or a law enforcement request. The company has its own wallet blocking policy, which focuses on the OFAC sanctions list.