Tether Freezes $4.2 Billion in Stablecoins Linked to Suspicious Activity

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Tether Takes Action Against Cryptocurrency-Related Crime

A leading issuer of stablecoins, Tether, has taken a significant step in the fight against cryptocurrency-related crime. The company has frozen approximately $4.2 billion worth of its USDT tokens, which are linked to suspicious activity.

Cooperation with Law Enforcement Agencies

This move is part of Tether’s efforts to strengthen its monitoring of accounts associated with illicit financial operations. The frozen tokens represent a substantial portion of the company’s total circulating supply, which currently stands at around $180 billion.

According to a Tether spokesperson, around $3.5 billion of the frozen assets have been blocked since 2023. The company has clarified that wallets found to be associated with illegal activity were deactivated either upon requests from investigative agencies or through its internal compliance system.

Combating Financial Crime

The cryptocurrency sector has faced intense regulatory scrutiny globally due to concerns over money laundering and financial crime. International bodies such as the Financial Action Task Force (FATF) have urged countries to strengthen oversight of crypto markets, which are generally less regulated than traditional financial systems.

Research suggests that crypto-based money laundering has increased significantly in recent years, with estimates indicating that illicit cryptocurrency transactions could reach around $82 billion in 2025, compared to around $10 billion in 2020.

Tether’s Previous Actions

Tether has previously taken action against wallets linked to human trafficking, terrorism financing, and wartime illicit funding. The company has also blocked crypto wallets connected to restricted networks in Israel and Ukraine, as well as accounts associated with some Russian cryptocurrency exchanges.

Global Debate on Crypto Crime Control

The global debate over crypto crime control continues, with experts arguing that regulatory frameworks must evolve to address technological changes. Many analysts believe that cooperation among crypto companies, governments, and international agencies will be crucial in the future.

Tether has stated that it will continue to monitor suspicious accounts and conduct technical analysis, with any significant new developments related to the case to be disclosed publicly.