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
German robotics startup Neura has completed approximately 1 billion euros in funding, with Tether participating in the investment
German robotics startup Neura Robotics is raising approximately €1 billion in funding, with Tether Holdings SA participating in the investment to support AI-driven humanoid robot development. The company is valued at around €4 billion, with recent orders nearing $1 billion, and its clients include several well-known enterprises.
GateNews1h ago
Tether Puts $50M Into Eight Sleep, Pushing Valuation to $1.5B
_Tether led a $50M funding round in Eight Sleep, valuing the sleep tech company at $1.5B and integrating its QVAC AI platform._
Tether Investments has led a $50 million funding round in Eight Sleep. The deal, announced on March 4, 2026, values the sleep technology company at $1.5 billion.
Eigh
LiveBTCNews8h ago
European banking giants join forces: Can the euro stablecoin reshape the global crypto landscape?
The article discusses the background and significance of the Qivalis alliance launching a euro-pegged stablecoin, marking Europe's banking system's response to on-chain finance and aiming to counter the influence of dollar stablecoins. The alliance consists of 12 major banks, emphasizing a robust reserve mechanism to attract institutional investors and promote the application of stablecoins in the digital asset space. The article suggests that future on-chain finance may evolve into a multi-sovereign clearing structure, rather than being centered solely around the US dollar.
PANews14h ago
Tether and Lugano Launch Plan ₿ Phase II to Expand Crypto Integration
Lugano's Phase ₭ Phase II, launched with Tether, aims to integrate cryptocurrency into local infrastructure, building on a successful pilot. A $6.4 million investment will expand services and support digital identity systems, fostering blockchain entrepreneurship.
ICOHOIDER14h ago
Tether makes a strategic investment of $1.5 billion in smart sleep technology company Eight Sleep
Tether Investments has made a strategic investment of $1.5 billion in smart sleep technology company Eight Sleep, aiming to enhance its capabilities and establish a long-term partnership to jointly develop health technology based on the Tether QVAC architecture. This move follows Tether's launch of the QVAC Health personal health platform, designed to integrate health data and improve user experience.
GateNews16h ago
Tether USAT's first reserve proof is out! Over-collateralized with 17.6 million MGB, analyzing the reserve composition structure
Deloitte & Touche has for the first time issued a reserve certification for USAt under Tether, showing an over-collateralization of $17 million in assets, strengthening its US compliance footprint.
Deloitte & Touche's first endorsement of Tether's assets marks a new milestone in USAT transparency
-----------------------------------
The world's leading stablecoin, Tether, has made progress in its pursuit of transparency. One of the Big Four accounting firms, Deloitte & Touche, has completed an assessment of Tether's new compliant stablecoin.
CryptoCity18h ago
