Since 2023, Tether has frozen $3.5 billion of its stablecoins and a total of $4.2 billion since the company’s launch, in cases where the tokens were linked to illicit activity. The stablecoin issuer currently has more than $180 billion of its dollar-pegged stablecoin in circulation, according to the report. The firm is able to remotely freeze its stablecoins held in users’ wallets in response to law enforcement requests, per the report. According to a Tuesday (Feb. 24) press release from the U.S. Department of Justice and Homeland Security Investigations, Tether helped federal agents seize $61 million worth of Tether (USDT) stablecoin after determining the funds were at cryptocurrency addresses allegedly linked to launderers of proceeds stolen by fraudsters.
The Department of Justice acknowledges Tether for its assistance in transferring these assets, the press release said. In its own press release about this case, Tether said it collaborates with more than 310 law enforcement agencies across 64 countries and that it has worked with international agencies to track, freeze and seize illicit funds. Tether CEO Paolo Ardoino said in the release, “We are committed to supporting the authorities in freezing illicit assets, protecting victims and ensuring that USDT continues to serve as a transparent tool for global commerce.”
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