Tether Says $4.2 Billion in Stablecoins Frozen Amid Global Crime Crackdown

Reading Time: < 1 minute

Tether has frozen about $4.2 billion of its stablecoin tokens over connections to illicit activity, the company said, highlighting its growing role in law enforcement efforts as regulators and agencies worldwide step up scrutiny of crypto-related crime.

The El Salvador-based issuer is the largest stablecoin provider globally, with more than $180 billion of its dollar-pegged USDT token currently in circulation, compared with roughly $70 billion three years ago. Tether can block and freeze tokens held in private crypto wallets when directed by law enforcement authorities.

The company disclosed this week that it worked with the US Justice Department to freeze nearly $61 million in USDT associated with “pig-butchering” scams — fraud schemes in which perpetrators cultivate personal trust with victims before persuading them to transfer funds.