Tether Freezes $500 Million in Assets Linked to Turkish Gambling Ring

Tether, the issuer of the world’s most widely traded stablecoin, has frozen more than $500 million in digital assets linked to an illegal gambling and money-laundering operation in Turkey. The action was taken at the request of Turkish authorities, who accused Veysel Sahin of operating unlawful betting platforms. Tether’s involvement was confirmed by its CEO, Paolo Ardoino.

The freeze is part of a broader investigation into underground gambling and payment networks in Turkey. Authorities said they identified illicit gains by tracing the financial trails of suspicious income and analyzing cryptoassets.

Tether has increasingly positioned itself as a partner to global law enforcement agencies. In a recent interview with Bloomberg, Ardoino said the company acts in accordance with the laws of the country where it operates. “That’s exactly what we do when we work with the Department of Justice or the FBI,” he said according to Cointelegraph.

Why Did This Happen?

Tether’s actions follow a pattern of working with authorities to freeze illicit assets. A January 2026 report by Elliptic showed that Tether and its competitor, Circle, had blacklisted 5,700 wallets containing $2.5 billion as of late 2025.

Turkish authorities have been actively targeting illegal betting operations. The freeze of Sahin’s assets marks the latest in a series of enforcement actions. Days after the Sahin announcement, another $500 million in cryptoassets was frozen in a separate investigation into money laundering and illegal betting.

How Did Markets Respond?

Tether’s USDT has a market capitalization of $187.3 billion, and its growing cooperation with law enforcement has raised questions about the token’s role in illicit activity. Despite its widespread use, USDT has faced scrutiny from regulators and blockchain researchers. A January 2026 report from Bitrace showed that $649 billion in stablecoins flowed through high-risk blockchain addresses in 2024.

Tether’s market position remains strong. In the fourth quarter of 2025, the company reported $12.4 billion in market capitalization growth for USDT, bringing its total to $187.3 billion.

What Are Analysts Watching Next?

Analysts are watching how Tether’s cooperation with law enforcement affects its reputation and adoption. While the company has taken steps to curb illicit use, its role in asset freezes has also drawn criticism from those who see crypto as a tool for financial freedom.

Tether’s recent investments in gold and financial infrastructure suggest it is positioning itself as more than a stablecoin issuer. The company announced a $150 million investment in Gold.com and a $100 million investment in Anchorage Digital, a U.S.-regulated crypto bank.

With over $6.3 billion in excess reserves and a global user base of 534 million, Tether has the financial resources to expand into new markets. However, its growing role in law enforcement and regulatory cooperation will continue to shape perceptions of its products and services.