The post Tether Freezes $4.2B USDT in Crime Crackdown appeared on BitcoinEthereumNews.com.

Tether has frozen $4.2 billion in USDT linked to illicit activity. Most freezes occurred after 2023 amid stronger global enforcement efforts. Authorities continue increasing scrutiny on stablecoins and crypto finance. Tether has frozen approximately $4.2 billion worth of its USDT stablecoin over links to illicit activity, the company confirmed. The El Salvador-based issuer said it carried out most of these freezes in the past three years as global enforcement efforts intensified. The stablecoin giant, which now has more than $180 billion USDT in circulation, retains the ability to remotely freeze tokens held in crypto wallets when law enforcement agencies request action. Coordinated Law Enforcement Efforts This week, Tether confirmed that it assisted the U.S. Justice Department in freezing nearly $61 million in USDT tied to “pig-butchering” scams. These schemes involve fraudsters building personal relationships with victims before persuading them to invest in fake crypto opportunities. The latest freeze brings Tether’s cumulative enforcement total to $4.2 billion. According to company statements, roughly $3.5 billion of that amount has been frozen since 2023. Tether has also blocked wallets connected to human trafficking networks and individuals linked to terrorism and warfare in Israel and Ukraine. Russian crypto exchange Garantex reported last year that Tether froze funds held on its platform. The company sees itself as an active participant in the fight against crime. Tether argues that they work in collaboration with authorities around the world in monitoring and addressing suspicious transactions. Rising Concerns Over Illicit Crypto Flows Regulators around the world are becoming increasingly wary about the involvement of cryptocurrency in financial crime. The Financial Action Task Force  (FATF) urged countries last year to step up their enforcement in crypto markets, which tend to be less regulated than traditional financial systems. Blockchain researchers reported that money launderers received at least $82 billion in…

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Filed under: News - @ March 1, 2026 2:09 am