Paris: Leading stablecoin issuer Tether has frozen nearly $4.2 billion (about $4.2 billion in equivalent value) worth of its digital tokens as part of a crackdown on accounts linked to suspected criminal activity. The company said the action reflects stricter monitoring of accounts associated with illicit financial operations over the past three years.
Billions Frozen in Compliance Drive
El Salvador-based Tether is one of the world’s largest stablecoin operators. The circulation of its US-dollar-pegged token, USDT, has expanded rapidly in recent years. The company said nearly $180 billion worth of its tokens are currently in circulation, compared with about $70 billion three years ago. Tether also stated that it can remotely freeze tokens stored in users’ crypto wallets when requested by law enforcement agencies.
The company recently worked with the United States Department of Justice to freeze about $61 million worth of USDT tokens linked to so-called “pig-butchering” scams. In such fraud schemes, scammers first build online trust with victims and later persuade them to transfer large sums of money under the guise of investment opportunities.
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Cooperation With Law Enforcement
According to a Tether spokesperson, about $3.5 billion of the total frozen assets has been blocked since 2023. The company clarified that wallets found to be associated with illegal activity were deactivated either upon requests from investigative agencies or through its internal compliance system.
The cryptocurrency sector has long been under global regulatory scrutiny due to concerns over money laundering and financial crime. International bodies such as the Financial Action Task Force (FATF) have urged countries to strengthen oversight of crypto markets, which are generally less regulated than traditional financial systems.
Rapid Growth of Stablecoins
Experts say crypto-based money laundering has increased significantly in recent years. Research estimates suggest that illicit cryptocurrency transactions could reach about $82 billion in 2025, compared with roughly $10 billion in 2020. Growth has been particularly noted in transactions linked to Chinese-language criminal networks.
Stablecoins are primarily used in digital trading and cryptocurrency exchange platforms. Their transaction volumes have expanded sharply in recent years, making them an important component of the digital financial ecosystem. However, regulators remain concerned that the same technology could also be exploited for illegal financial operations.
Tether said it has previously taken action against wallets linked to human trafficking, terrorism financing, and wartime illicit funding. Earlier, the company also blocked crypto wallets connected to restricted networks in Israel and Ukraine, as well as accounts associated with some Russian cryptocurrency exchanges.
Rising Concerns Over Crypto Crime
The global debate over crypto crime control continues. Experts argue that as digital asset usage expands, regulatory frameworks must evolve to address technological changes. Many analysts believe cooperation among crypto companies, governments, and international agencies will be crucial in the future.
The company stated that it continues to monitor suspicious accounts and conduct technical analysis. Tether added that any significant new developments related to the case will be disclosed publicly.
