Tether, the issuer of the world’s largest stablecoin USDt, has frozen more than $12.3 million worth of USDT on the Tron Network, continuing its aggressive effort to curb illicit financial activity across the cryptocurrency landscape.
Blockchain data from Tronscan confirms the freeze occurred at 9:15 am UTC on Sunday, although Tether has yet to release an official statement on the matter. The move comes amid growing scrutiny over how digital assets may be used to evade sanctions or facilitate money laundering.
While the specific rationale behind the freeze remains unconfirmed, it aligns with Tether’s long-standing compliance policy. In a March 7 blog post, the company emphasized its commitment to adhering to the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctions list, stating that it “enforces a strict wallet-freezing policy to combat money laundering, nuclear proliferation, and terrorist financing.”
This latest action adds to Tether’s growing record of proactive enforcement. On March 6, the stablecoin issuer froze $27 million in USDT linked to wallets on Garantex, a Russia-based crypto exchange sanctioned by OFAC in April 2022. That same day, Garantex accused Tether of waging “war against the Russian crypto market,” claiming more than 2.5 billion rubles (approximately $27 million) had been blocked.
Despite the sanctions and freezing measures, blockchain analytics firm Global Ledger reported over $15 million in active Garantex-tied reserves as of June 5, highlighting ongoing challenges in cutting off illicit financial pipelines.
Coordinated Crackdowns Yield Results
Tether’s capability to freeze assets, although criticized by decentralization purists, has proven effective in disrupting criminal enterprises. Notably, the Tether-led T3 Financial Crimes Unit (FCU), which includes partners such as the Tron Network and blockchain analytics firm TRM Labs, has frozen $126 million in USDT within just six months of its formation, according to a January 2025 report by Cointelegraph.
The FCU is designed to support global law enforcement in halting suspicious activity on-chain, underscoring the growing cooperation between crypto firms and regulatory authorities.
One of the most prominent targets of these enforcement actions is North Korea’s Lazarus Group. Allegedly backed by the North Korean state, the group has laundered more than $200 million in stolen crypto between 2020 and 2023. Lazarus has been responsible for over $3 billion in thefts across numerous high-profile hacks.
In November 2023, Tether blacklisted over $374,000 in stolen funds linked to Lazarus. Additionally, three other stablecoin issuers froze a further $3.4 million across addresses associated with the group, according to blockchain investigator ZachXBT.
Also Read: Tether Freezes $27M USDT on Russian Exchange Garantex Amid EU Sanctions
A New Standard in Compliance?
Tether’s aggressive approach—while occasionally controversial—signals a shift in the stablecoin industry, where accountability and compliance are becoming essential pillars for long-term viability. As blockchain analytics and enforcement partnerships evolve, more illicit actors may find themselves locked out of the financial utility offered by stablecoins like USDT.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
