Assisting Turkey in freezing $1 billion in assets, Tether's compliance approach has changed. The new measures aim to support Turkey's efforts to combat financial crimes and enforce sanctions. Tether is now implementing stricter verification processes and collaborating more closely with regulatory authorities to ensure compliance with international standards. This shift reflects a broader move within the industry to enhance transparency and accountability in digital asset management.

Written by: Ryan Weeks, Todd Gillespie, Taylan Bilgic

Translated by: Luffy, Foresight News

On January 30, Turkish authorities announced the freezing of assets worth over $500 million under Veysel Sahin’s name. Sahin is accused of operating illegal gambling platforms and suspected of money laundering. The Istanbul Chief Prosecutor revealed that an unnamed cryptocurrency company carried out this freeze operation at the request of the Turkish government.

This company is Tether Holdings SA, which issues the $185 billion market cap stablecoin USDT. Recently, the company has actively assisted governments around the world in combating various cryptocurrency-related crimes, including money laundering, drug trafficking, and sanctions evasion.

Tether CEO Paolo Ardoino stated in a recent interview with Bloomberg News, “Law enforcement agencies approached us, provided relevant information, and after verification, we took action in accordance with the laws of the respective countries. We follow this process when cooperating with agencies like the U.S. Department of Justice and the FBI.”

Tether has not commented further on this case. Bloomberg attempted to contact Sahin but was unsuccessful. A Turkish official also refused to disclose the name of the company mentioned in the prosecutor’s statement.

The €460 million (approximately $544 million) assets frozen are part of a large-scale law enforcement operation in Turkey. The country has now frozen over $1 billion in related assets. According to Turkish TV station NTV, a few days after the Sahin asset freeze was announced, another individual was under investigation for suspected money laundering and illegal gambling, with $500 million worth of crypto assets frozen under their name. It is currently unclear whether this asset freeze involves tokens issued by Tether.

A Turkish official, who wished to remain anonymous and spoke to Bloomberg about sensitive legal matters, revealed that authorities tracked the flow of funds and analyzed crypto assets, discovering “financial traces” of these suspected illegal income. The official also stated that similar asset freezes will be implemented in the future targeting individuals involved in illegal gambling and payment systems.

For Tether, this freeze is just one of many increasing asset freezes, highlighting the company’s ongoing efforts to strengthen cooperation with global law enforcement agencies.

A report released in January by analytics firm Elliptic shows that by the end of 2025, Tether and its competitor Circle Internet Group Inc. will have blacklisted about 5,700 wallets involving approximately $2.5 billion in assets, a figure that was negligible two years ago. At the time of freezing, three-quarters of these wallets held USDT.

Arda Akartuna, head of crypto threat intelligence for Elliptic in the Asia-Pacific region, said, “As the legitimate use of cryptocurrencies accelerates and global payment integration progresses, illegal activities are also increasing. This prompts stablecoin issuers to intervene more actively.”

Tether often promotes its efforts to combat crime, including in communications aimed at attracting potential investors. The company is seeking to raise funds at a valuation of up to $500 billion. According to its official website, Tether has assisted law enforcement agencies in 62 countries with over 1,800 cases, freezing $3.4 billion worth of USDT related to suspected illegal activities.

Nathan McCauley, co-founder and CEO of Anchorage Digital Bank, a Tether partner, said in an interview, “They (Tether) are very proactive in cooperation, and among stablecoin issuers, the company has a ‘recognized best reputation’ among law enforcement agencies.”

Anchorage is the issuer of Tether’s compliant US dollar stablecoin USAT, which was launched in late January, marking Tether’s return to the U.S. market.

This is a significant shift from a few years ago when Tether had tense relations with U.S. regulators. After conflicts with regulators in 2018, Tether largely exited the U.S. market and settled in 2021 by paying $41 million over allegations of misreporting reserves.

However, the second Trump administration expressed a welcoming attitude toward the cryptocurrency industry. Last year, Ardoino and several other executives attended the ceremony where President Trump signed the stablecoin regulation bill.

Even so, Tether’s USDT continues to face regulatory scrutiny due to its widespread use by criminals.

On January 9, the U.S. Eastern District of Virginia Federal Prosecutor’s Office announced charges against a Venezuelan citizen for laundering $1 billion using USDT. A recent report by Elliptic showed that the Central Bank of Iran had purchased over $500 million worth of USDT to alleviate currency crises and evade U.S. sanctions.

Veysel Sahin, a fugitive in Turkey, is accused of leading an organization that launders money for illegal online gambling platforms. Local media reported that Sahin was sentenced to 10 years in prison in 2017, released in 2023, and then sentenced to 21 years a month later. His whereabouts are currently unknown, but the Turkish official news agency Anadolu reported on January 30 that “authorities are advancing legal procedures to extradite him back to Turkey.”