Tether has frozen $344 million in USDT, its dollar-pegged stablecoin, following a request from U. S. law enforcement. The freeze, executed on April 23, 2026, targeted two specific wallet addresses suspected of being linked to "unlawful conduct". The company did not disclose further details about the suspected activities or the identities of the wallet owners. This marks one of Tether's largest single enforcement actions to date.
The action was coordinated with the U. S. Office of Foreign Assets Control (OFAC). Tether CEO Paolo Ardoino stated, "When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively". Tether has a policy of freezing assets when it finds credible ties to sanctioned entities, criminal networks or other illegal activity.
This move highlights the ongoing debate about the role of stablecoin issuers in policing illicit activity. Some critics argue that centralized stablecoins give companies too much control, while others say it is a necessary measure to prevent criminal activity. Tether collaborates with over 340 law enforcement agencies across 65 countries. Since 2023, the company has assisted in freezing over $4.4 billion in assets, including $2.1 billion connected to U. S. authorities.
The U. S. Department of Justice has previously acknowledged Tether's assistance in operations that led to the seizure of nearly $61 million and approximately $225 million related to "pig butchering" fraud schemes. This recent action underscores the increasing pressure on stablecoin issuers to actively combat illicit uses of their platforms and cooperate with regulatory bodies.
