Tether Freezes $12.3 Million in USDT Over Money Laundering Allegations

Tether, the issuer of the widely used stablecoin USDT, took decisive action on Sunday by freezing $12.3 million worth of USDT on the Tron blockchain. This move was in response to allegations of money laundering and sanctions evasion linked to specific wallets. The company's T3 Financial Crime Unit (FCU), in collaboration with Tron and TRM Labs, has been instrumental in tracking and freezing suspect transactions in real time. Since late 2024, the FCU has successfully frozen over $126 million in questionable assets, with a significant portion, $100 million, being blocked in the last quarter of that year. This surge in enforcement efforts coincides with global regulators tightening their scrutiny on cryptocurrency activities.

Tether's actions are part of a broader strategy to align with regulatory standards, particularly those set by the US Treasury’s Office of Foreign Assets Control (OFAC). The company regularly blacklists wallets associated with sanctioned entities, including those on the Specially Designated Nationals (SDN) list. For instance, in March 2025, Tether froze $27 million worth of USDT on the Russian-linked exchange Garantex following the EU’s 16th package of sanctions. This move led to Garantex suspending its services, with over 2.5 billion rubles of user funds being held up.

Another notable example is the blacklisting of $374,000 in USDT tied to addresses associated with North Korea’s Lazarus Group. This group has been linked to moving over $3 billion in stolen crypto since 2009. Other stablecoin companies also joined in locking up $3.4 million in identical wallets, demonstrating the collective effort of large issuers to disrupt state-sponsored hacking activities.

In addition to its enforcement efforts, Tether has diversified its holdings by acquiring a 32% equity stake in Elemental Altus Royalties on June 12, 2025. This deal involved purchasing over 78 million shares at CAD1.55 per share, valued around $89 million. This strategic move not only backs Tether's stablecoin with real assets but also aims to appease risk-averse regulators who demand strong reserves. By combining tough enforcement with asset diversification, Tether aims to set a new benchmark for stablecoin governance, strengthening confidence in its USDT stablecoin.