Tether has frozen about $4.2 billion in USDT linked to illegal activity, according to Reuters. Around $3.5 billion of that total has been frozen since 2023. The move shows Tether’s active role in fighting crypto-related crime.
Tether Freezes Billions to Fight Fraud
The frozen funds account for roughly 2.3% of USDT’s $180 billion circulating supply. While Tether has worked closely with the U.S. Department of Justice to target scams.
One example is “pig-butchering” frauds, where criminals trick victims into sending money with fake investment promises. This week, about $61 million in USDT linked to such scams was blocked. Therefore, by taking these steps, Tether aims to protect users and maintain trust in its stablecoin.
Tether Works With Law Enforcement
CEO Paolo Ardoino stressed Tether’s commitment to cooperating with regulators. The company shared a video highlighting the frozen funds alongside his image.
This visual emphasizes the company’s compliance and reinforces its anti-fraud message. Moreover, the collaboration shows how stablecoin issuers can work with authorities to prevent criminal activity.
Effects on USDT and Investors
The freeze did not significantly impact USDT’s market stability. Analysts note that it may even boost confidence among investors.
High-volume traders and institutions could view Tether’s actions as a sign of reliability. Meanwhile, casual users see that the network actively prevents misuse. This move also highlights the importance of transparency and security in the stablecoin ecosystem.
Tether Highlights Compliance and Security
Tether’s recent actions underline the growing focus on regulatory compliance in crypto. As authorities continue to investigate fraud, issuers face more scrutiny.
For users and investors, these proactive steps demonstrate that the platform can stop criminal activity without affecting token functionality. This freeze helps protect the market while maintaining USDT’s role as a widely used stablecoin. This response shows that stablecoin issuers can balance compliance, security and accessibility for all users.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Tether's QVAC Workbench releases version 0.4.1, with multiple upgrades focused on AI localization
Tether CEO Paolo Ardoino announced on the X platform that the smart development platform QVAC Workbench 0.4.1 has been released. The new version enhances the serverless experience, optimizes delegated inference and RAG capabilities, supports more document formats, and has been optimized for mobile devices. It is currently in Alpha testing, with the full mode coming soon.
GateNews15h ago
Mega Financial Chairman: No one can profit from the three major pitfalls of stablecoins? Clearly states "Banks can't find advantages in issuing them"
Mega Financial Holding Chairman Dong Rui-bin pointed out that issuing stablecoins in Taiwan faces three major challenges: insufficient payment demand, limited influence of bank brands, and strict regulatory requirements. The model of banks issuing stablecoins is difficult to profit from, and future legislation will be led by financial institutions, but market demand remains uncertain.
動區BlockTempo17h ago
Circle Faces Upgraded Stablecoin Competition: Tether and Wall Street Enter the Market, Can USDC Continue to Lead?
As competition in the global stablecoin market intensifies, Circle faces challenges from Tether and traditional financial institutions, but its advantages in compliance, partnerships, and technology remain promising. Research predicts that Circle's stock price is expected to rise, while USDC's growth trend and revenue are expanding rapidly. Circle is also exploring the integration of AI and blockchain in payment scenarios, and future competitive dynamics will depend on compliance capabilities and the expansion of its payment network.
GateNews19h ago
Tether mints an additional 50 million USDT on the Plasma chain
Gate News Report, March 10th, according to Whale Alert monitoring, Tether issued an additional 50,000,000 USDT on the Plasma blockchain, worth approximately $50.01 million at current prices.
GateNews03-10 12:58
Tether's BrainWhisperer brain signal decoding accuracy reaches 98.3%, ranking fourth in the Kaggle competition.
The BrainWhisperer project under Tether achieved an accuracy of 98.3% in converting brain signals to text, ranking fourth in the Brain-to-Text '25 competition. The system combines the OpenAI Whisper model and LoRA technology and is currently developing cross-individual signal decoding and non-invasive brain-computer interfaces.
GateNews03-10 08:31
