Tether Blocks $32 Million in USDT, Signaling Intensified Compliance Efforts
CARACAS - Tether, the issuer of the world’s largest stablecoin USDT, has frozen $32 million in cryptocurrency over five separate actions in 2025, demonstrating a deepening commitment to combating illicit finance and adhering to international sanctions regulations. The actions, targeting addresses linked to alleged money laundering, sanctions evasion, and regional criminal investigations, underscore the growing scrutiny faced by stablecoins and the proactive steps Tether is taking to address concerns from regulators worldwide.
These freezes represent a significant increase in Tether’s compliance activity, reflecting a broader industry trend toward greater openness and accountability. While stablecoins offer benefits like faster and cheaper transactions, their potential for misuse in illicit activities has drawn attention from authorities like the U.S. Treasury’s Office of Foreign Assets Control (OFAC). Tether’s recent actions signal a willingness to cooperate with these efforts and mitigate risks associated with its digital currency.
The largest single freeze occurred in January 2025, involving $15.8 million,followed by a $7.8 million block in March, aimed at disrupting terrorist financing networks. In June, $12.3 million was frozen, specifically targeting Tron blockchain addresses allegedly involved in money laundering and sanctions evasion, highlighting Tether’s responsiveness to OFAC regulations. in August,over $300,000 in USDT was frozen in argentina as part of the investigation into the $LIBRA case,at the request of federal prosecutors,demonstrating regional collaboration in asset recovery.
These actions collectively illustrate Tether’s evolving approach to compliance and its commitment to preventing its stablecoin from being used for illegal purposes.
