Tether aids US law enforcement in freezing $344M in USDT linked to illicit activity

Tether, the issuer of the largest stablecoin, USDT, announced on Thursday that it aided the Office of Foreign Assets Control (OFAC) and United States (US) law enforcement in freezing $344 million across two addresses.

USDT not safe haven for illicit activity – Paolo Ardoino

Tether said the freeze was executed after the US government shared information that helped to identify the addresses, preventing further movement of funds. The addresses had been blacklisted due to ties to unlawful activities.

“When wallets are identified as connected to sanctions evasion, criminal networks, or other illicit activity, Tether can move to restrict those assets,” Tether stated in a press release.

Paolo Ardoino, Tether’s CEO, said that “USDT is not a safe haven for illicit activity,” emphasizing that the company works hand in hand with law enforcement and governments worldwide to restrict assets linked to criminal networks, wallets evading sanctions, or other fraudulent activities.

Tether added that it is actively working with over 340 law enforcement agencies across 65 countries. So far, the company’s cooperation has aided more than 2,300 cases globally, which include over 1,200 pursued by US authorities. In total, Tether has frozen more than $4.4 billion in assets, including over $2.1 billion tied to US law enforcement.

Transactions on public blockchains allow investigators and issuers to trace the flow of funds. With this trail, transactions and wallets can be flagged while assets are frozen, stopping further movement.

Crypto crime hit record highs in 2025

Illicit cryptocurrency addresses received over $154 billion in 2025, representing a staggering 161% YoY increase, largely driven by a drastic surge in the value of assets held by sanctioned entities, according to a Chainalysis report published in January.

“But even if the value received by sanctioned entities were flat YoY, 2025 would still mark a record year for crypto crime, as activity increased across most illicit categories,” the Chainalysis report states.

Stablecoins have grown to become dominant players in illicit transactions, accounting for at least 84% of fraudulent transaction volume. The trend mirrors broader ecosystem patterns, as more transactions in the industry are increasingly concentrated in stablecoins due to the practical benefits they offer, including transferability, lower volatility and broader utility.