16-6-2025 – Tether, the issuer of the world’s pre-eminent stablecoin USDt, has immobilised digital assets exceeding $12.3 million on the Tron Network. This action, recorded at 9:15 am UTC on 15 June, as evidenced by Tronscan’s blockchain data, underscores Tether’s ongoing vigilance against nefarious activities within the cryptocurrency realm.
The frozen funds, though not publicly addressed by Tether, are believed to be linked to potential breaches of sanctions or anti-money laundering (AML) protocols, aligning with the company’s stringent policies. In a March blog post, Tether reiterated its commitment to thwarting money laundering, terrorist financing, and nuclear proliferation, in compliance with the US Treasury’s Office of Foreign Assets Control (OFAC) Specially Designated Nationals List.
Tether’s capacity to halt transactions has drawn scrutiny, notably after it blocked $27 million in USDt on the Garantex exchange on 6 March. The exchange, which subsequently suspended operations, decried Tether’s actions as a targeted assault on the Russian crypto market, claiming losses equivalent to 2.5 billion rubles. Garantex has faced regulatory headwinds since April 2022, when OFAC imposed sanctions, citing the platform’s failure to adhere to AML and other compliance standards.
Despite this, blockchain analytics from Global Ledger revealed on 5 June that Garantex retained active reserves surpassing $15 million, according to Cointelegraph. The broader significance of Tether’s interventions is evident in its collaboration with the T3 Financial Crimes Unit (FCU), alongside Tron Network and TRM Labs.
Since its inception, the FCU has frozen $126 million in USDt within six months, aiding global law enforcement in disrupting illicit transactions. Such measures have notably hindered groups like the North Korean state-backed Lazarus Group, infamous for siphoning over $3 billion in crypto assets between 2017 and 2023. In November 2023, Tether blacklisted $374,000 in stolen funds tied to Lazarus, while other stablecoin issuers have collectively barred $3.4 million across associated addresses, per blockchain investigator ZachXBT.
While some proponents of decentralisation question Tether’s authority to freeze assets, the mechanism has proven effective in preventing hundreds of millions in illicit crypto from circulating, reinforcing its role in safeguarding the integrity of the digital asset ecosystem.
