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Tether freezes USDT on Tron worth $12.3 million, citing suspicious activity tied to AML or sanctions violations. More wallets may be impacted.
Author: Akshat Thakur
Tether, the issuer of the world’s largest stablecoin, has frozen $12.3 million in USDT on the Tron blockchain. The move is part of Tether’s ongoing efforts to combat illicit activity and enforce Anti-Money Laundering (AML) policies across its network.
On June 16, Tether froze over $12.3 million in USDT at 9:15 am UTC, according to on-chain data from Tronscan. Although no official statement has been released, the freeze aligns with Tether’s enforcement policy that follows the U.S. Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. The firm has previously stated its intent to prevent money laundering, terrorist financing, and sanctions evasion through such measures.
The blocked addresses may be linked to suspicious financial flows or sanctioned entities, as no prior announcement was made before the freeze.
Tether has been increasingly proactive in freezing funds suspected of criminal use. This latest action comes just months after the company froze $27 million on the sanctioned Russian exchange Garantex. The exchange, sanctioned by OFAC in April 2022, claimed Tether had “entered the war against the Russian crypto market.”
In a separate case, blockchain analytics platform Global Ledger reported that over $15 million remained in active reserves on Garantex as of June 5, despite previous freezes.
In November 2023, Tether also blacklisted over $374,000 worth of stolen funds. Three other stablecoin issuers collectively froze $3.4 million in wallets connected to the North Korean Lazarus Group, one of the most notorious crypto hacking syndicates.
In early 2025, Tether launched the T3 Financial Crimes Unit (FCU) in collaboration with Tron Network and TRM Labs. Within its first six months, the FCU froze $126 million in USDT, showcasing the group’s rapid enforcement capabilities.
The Lazarus Group remains a key focus, having laundered over $200 million in stolen crypto between 2020 and 2023. Tether’s partnership with blockchain surveillance firms and law enforcement is part of its larger mission to ensure compliance and safety in the digital asset ecosystem.
While many applaud Tether’s strong stance against financial crime, some in the decentralized finance (DeFi) community remain skeptical. Critics argue that such asset-freezing capabilities undermine decentralization and give too much control to a single issuer.
Nonetheless, Tether’s approach signals a broader industry trend—stablecoins are evolving into regulated financial tools, subject to oversight and increasingly aligned with global compliance standards.
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