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- Tether froze $4.2B in tokens over three years as global authorities intensified crime probes.
- The company aided U.S. investigators in blocking $61M in USDT tied to major pig-butchering scams.
- Growing stablecoin use pushed USDT supply above $180B, increasing regulatory scrutiny worldwide.
Tether has frozen $4.2 billion worth of its tokens due to connections to illicit activities. The company confirmed that most of these funds were frozen within the last three years.
Several jurisdictions have asked for these freezes. These moves are a sign of increasing efforts to combat crime related to cryptocurrency use.
According to Reuters, Tether said that $3.5 billion of frozen assets has been blocked since 2023. The company has the ability to freeze funds within user wallets when ordered to do so by law enforcement agencies. The capability is used when investigators flag suspicious activity.
Tether Expands Supply as Authorities Freeze Funds
The circulating supply of Tether tokens is increasing. The company now has more than $180 billion worth of its dollar-pegged stablecoin circulating within the market. Three years ago, this figure was around $70 billion. The rapid increase shows the expanding use of stablecoins.
Reuters also reported that Tether was involved in recent activities with US authorities. The company assisted the US Justice Department in freezing around $61 million in USDT.
The funds were from pig butchering scams. The scam occurs when criminals build personal relationships with their victims before stealing from them.
The recent activity brought Tether’s total frozen funds to 4.2 billion. The funds are from illicit activities. The company acknowledged this in its communication. Reuters cited Tether’s description of the scam and its role in the investigation.
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Tether has been involved in freezing funds for other reasons. Reuters noted that Tether froze accounts related to human trafficking. The company also froze accounts related to terrorism and warfare in Ukraine and Israel.
Rising Global Warnings as Illicit Crypto Activity Accelerates
The cryptocurrency exchange operated by sanctioned Russians, Garantex, said that Tether froze its funds last year.
Authorities worldwide continue to warn about crypto-enabled financial crime. The Financial Action Task Force urged countries to adopt stronger safeguards. The group said crypto markets remain less regulated than traditional finance. It called for more vigilance from national regulators.
Blockchain researchers cited a sharp rise in money laundering through cryptocurrencies. They estimated that illicit actors received at least $82 billion in crypto last year. The figure was about $10 billion in 2020. The increase reflects broader market growth and expanded criminal activity.
Stablecoins remain heavily used in crypto trading. Their rising volumes continue to draw scrutiny from global regulators.
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