Tether Freezes Approx $1.6M USDT in DOJ Counterterrorism Action

Tether has frozen approximately $1.6 million in USDT linked to wallets associated with BuyCash, a Gaza-based financial network implicated in terrorism financing. The action, part of a U.S. Department of Justice (DOJ) civil forfeiture case, aims to recover digital assets used to support designated terrorist organizations. Tether confirmed the funds were identified through secondary market investigations and reissued to facilitate legal recovery. The company emphasized its collaboration with U.S. law enforcement agencies, highlighting its role in broader efforts to combat illicit financial activities [1].

This intervention follows Tether’s history of assisting authorities in seizing illicit funds. In 2025, the stablecoin issuer supported Brazilian authorities in blocking R$32 million (approximately $6.2 million) tied to a money laundering scheme involving Klever Wallet. Earlier in the year, it was recognized by the DOJ for a $225 million USDT freeze in a major enforcement action. Additional notable cases include $23 million in transactions linked to the Russian-sanctioned Garantex exchange and $9 million from the Bybit hack. To date, Tether has blocked over 5,000 wallets in coordination with law enforcement, with 2,800 of those actions involving U.S. agencies.

Tether’s CEO, Paolo Ardoino, underscored the company’s commitment to leveraging blockchain transparency to combat financial crime. He highlighted USDT’s traceable nature as a critical advantage over traditional systems, enabling rapid identification and containment of illicit flows. Since its inception, Tether has frozen over $2.9 billion in USDT tied to criminal activity, supporting 275 law enforcement agencies across 59 jurisdictions. These actions align with the company’s policy of freezing wallets in accordance with the OFAC Specially Designated Nationals (SDN) List and other regulatory frameworks.

The recent operation reflects the expanding role of stablecoins in law enforcement investigations. While critics have raised concerns about crypto misuse, Tether’s proactive measures demonstrate how blockchain’s public ledger can aid authorities in tracking and recovering funds. The company’s ability to freeze and reissue tokens within hours has become a vital tool in disrupting criminal networks. However, the scale of these operations also underscores the need for a balanced regulatory approach as stablecoin adoption grows. Regulators and industry stakeholders must address risks while fostering innovation to prevent misuse.

Tether’s transparency in reporting compliance efforts, including public records of frozen wallets, has enhanced its credibility with regulators. This case further illustrates the potential for private-public partnerships in tackling global financial crime, particularly as digital assets increasingly facilitate cross-border transactions. Tether remains a key player in bridging decentralized finance and traditional enforcement mechanisms, reinforcing its position as a critical actor in the evolving financial landscape.

Source: [1] [Tether Announces Freeze of $1.6M USDT in Counterterrorism Collaboration] [https://tether.io/news/tether-acknowledged-by-u-s-authorities-for-freezing-1-6m-connected-to-terrorism-financing/]