Tether, a Key Tool for Blocking Criminal Funds?

▲ Tether (USDT), Dollar (USD)/ChatGPT generated image ©

As if declaring war on illicit funds, Tether has frozen 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 worth of Tether (USDT) tied to two wallet addresses. This measure was promptly executed after the government identified addresses linked to illicit activities, blocking fund movements.

Tether explained that it can restrict assets 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 they are working closely with governments and investigative agencies worldwide.

Currently, Tether is cooperating with over 340 law enforcement agencies in 65 countries and has been involved in resolving more than 2,300 cases. Over 1,200 of these cases are related to U.S. authorities. The cumulative frozen assets have exceeded $4.4 billion, with over $2.1 billion of that amount associated with 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 once suspicious wallets are identified, they are immediately flagged, and freezing measures are taken. This structure combines transaction traceability with the control of a central issuer, functioning as a means of crime deterrence.

Meanwhile, the scale of cryptocurrency crime reached an all-time high in 2025. According to a Chainalysis report, funds flowing into illicit addresses amounted to $154 billion, 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 being strengthened.

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