TLDR
- Tether has frozen $182 million in USDT across five Tron blockchain wallets in response to a law enforcement request.
- The frozen funds, ranging from $12 million to $50 million per wallet, are linked to an ongoing investigation.
- Tether’s wallet-freezing policy, introduced in December 2023, enables the company to block addresses under legal directives.
- The company works with over 310 law enforcement agencies across 62 jurisdictions to combat illicit crypto activities.
- Tether has frozen more than $3 billion in user funds in cooperation with authorities as part of its regulatory compliance efforts.
Tether, the company behind the USDT stablecoin, has frozen $182 million across five Tron blockchain wallets. The action follows a request from law enforcement authorities as part of an ongoing investigation. The company confirmed that the frozen funds were tied to illicit activities, and it continues to work with authorities to curb such actions.
Tether’s Ongoing Cooperation with Authorities
Tether’s decision to freeze funds aligns with its ongoing commitment to regulatory compliance. The company has worked with law enforcement agencies for months to help combat illicit crypto activities. In this instance, Tether froze between $12 million and $50 million per wallet based on the investigation.
This action forms part of broader regulatory efforts. It also aligns with Tether’s formal wallet-freezing policy introduced in December 2023. This policy allows the company to block addresses as required by legal and regulatory bodies, particularly those from U.S. authorities.
Regulatory Support and Transparency in Freezing Wallets
Tether maintains that it reserves the right to disclose information to authorities when necessary. The company emphasized that such measures are designed to protect itself, its customers, and its associates. “Tether works with over 310 law enforcement agencies across 62 jurisdictions,” the company said in a statement.
In total, Tether has frozen more than $3 billion in funds in cooperation with authorities. These actions reinforce the company’s commitment to operating within legal frameworks. They also emphasize Tether’s approach to fostering transparency and supporting regulatory actions.
The funds were held on the Tron blockchain, which is a popular platform for USDT transactions. Tether continues to hold a dominant position in the stablecoin market, with USDT accounting for around 60.66% of the total market capitalization. With over $186 billion in circulation, USDT remains the largest stablecoin by supply.
The company’s actions stand in contrast to those of other stablecoin issuers. For example, Circle’s USDC has seen about $109 million frozen, a fraction of Tether’s total. This disparity reflects Tether’s larger footprint in the stablecoin ecosystem and its proactive approach to regulatory matters.
Tether’s increased focus on regulatory compliance has expanded its recognition in multiple regions. Recent developments include the addition of USDT to Abu Dhabi’s stablecoin register. This move allows licensed entities to trade and settle with USDT under regulated conditions, alongside other stablecoins like USDC.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
