On Thursday, Tether collaborated with U.S. authorities to freeze more than $344 million worth of USDT stablecoins across two Tron addresses, marking one of the largest compliance actions it has undertaken. Although Tether did not specify the network involved, blockchain security firm PeckShield identified the blacklisted addresses as TNiq9…QZH81 and TTiDL…pjSr9, containing approximately $213 million and $131 million respectively. Decrypt sought confirmation from Tether about these Tron addresses but did not receive an immediate response.
The freeze was prompted by allegations of sanctions evasion, involvement in criminal networks, or other illicit activities, according to a statement from Tether. The stablecoin issuer’s compliance team worked alongside the Office of Foreign Assets Control and other U.S. law enforcement agencies to impose restrictions on these USDT wallets.
“USDT is not a safe haven for illicit activity,” declared Tether CEO Paolo Ardoino in a statement. “When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively. Recent events have shown what happens when platforms fail to move quickly, enforcement breaks down, users are exposed, and trust erodes.”
“Our approach is different,” he added. “We combine blockchain transparency with real-time monitoring and direct coordination with law enforcement to stop funds before they can move. That’s a responsibility we take seriously as one of the largest issuers in the market.”
This action highlights Tether’s expanding compliance infrastructure, which now includes partnerships with over 340 law enforcement agencies across 65 countries. The stablecoin issuer noted that it has supported more than 2,300 cases globally and frozen over $4.4 billion in assets overall—including $2.1 billion associated with U.S. authorities.
The freeze follows a pattern of significant Tether actions coordinated with U.S. authorities. In November 2023, the company froze about $225 million in USDT linked to an investigation into human trafficking and pig butchering scams in Southeast Asia. In January 2026, roughly $182 million across five Tron wallets were frozen in another similar action.
Such freezes often involve the Office of Foreign Assets Control, the U.S. Treasury Department agency responsible for administering and enforcing economic and trade sanctions. The increasing frequency and scale of these actions reflect both the growing use of stablecoins in illicit finance and Tether’s efforts to maintain regulatory compliance.
Tether’s latest move comes amid investigations linking recent high-profile crypto hacks—the $285 million Drift Protocol attack and the $292 million Kelp DAO exploit—to North Korean hackers. Following these events, USDC stablecoin issuer Circle faced criticism for not acting to freeze funds related to the Drift Protocol hack. The firm defended its position by stating that it only freezes assets when required by law enforcement or through court orders.
“When Circle freezes USDT, it is not because we have decided, unilaterally or arbitrarily, that someone’s assets should be taken from them. It is because the law requires us to act,” said Circle Chief Strategy Officer Dante Disparte in a blog post.
A class action lawsuit has since been filed against Circle regarding the Drift Protocol funds. Drift announced it would switch from USDC to USDT as part of a Tether-backed recovery plan, which aims to provide $148 million in funding to compensate affected users.