Tether, a Key Tool to Block Illicit Funds?

▲ Tether (USDT), Dollar (USD) / ChatGPT Generated Image ©

As if declaring war on illicit funds, Tether froze 344 million USDT, bringing the 'traceability' of stablecoins back into the spotlight.

According to investment media FXStreet on April 23 (local time), Tether, in cooperation with the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) and U.S. law enforcement agencies, froze a total of 344 million Tether (USDT) tied to two wallet addresses. This measure was immediately executed after the government identified addresses associated with illegal activities, blocking fund movements.

Tether explained that assets can be restricted if wallets linked to sanctions evasion or criminal networks are identified. CEO Paolo Ardoino emphasized, "USDT is not a haven for illegal activities," and stated that Tether is working closely with governments and law enforcement agencies worldwide.

Currently, Tether is cooperating with over 340 law enforcement agencies in 65 countries and has been involved in resolving over 2,300 cases. Of these, more than 1,200 cases are related to U.S. authorities. The cumulative frozen assets have exceeded 4.4 billion dollars, with over 2.1 billion dollars of this amount linked to U.S. investigations.

Such responses are based on the transparency of the blockchain. Thanks to the public ledger structure, fund flows can be traced, and suspicious wallets are immediately flagged and frozen. This structure combines transaction traceability with the control of a central issuer, acting as a means of crime deterrence.

Meanwhile, in 2025, the volume of cryptocurrency crime reached an all-time high. According to a Chainalysis report, funds flowing into illicit addresses amounted to 154 billion dollars, a 161% increase year-on-year, with at least 84% of this occurring via stablecoins. The market notes that while the convenience and low volatility of stablecoins have increased their use in crime, their tracking and blocking capabilities are also simultaneously being strengthened.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*