Tether, the El Salvador-based stablecoin issuer, has frozen approximately $4.2 billion of its cryptocurrency tokens due to links with illicit activities, primarily over the last three years. This action aligns with global efforts to curb crypto-related crime.
Tether, with over $180 billion of its dollar-pegged token in circulation, has the capability to remotely freeze tokens in user wallets upon law enforcement requests.
This week, Tether reported assisting the U.S. Justice Department in freezing nearly $61 million in USDT tokens associated with "pig-butchering" fraud. The company stated that $3.5 billion of the total frozen assets has been blocked since 2023.
Previously, Tether has blocked wallets linked to human trafficking, terrorism, and warfare in Israel and Ukraine. The company also blocked funds on the sanctioned Russian crypto exchange Garantex last year.
Global authorities have expressed concerns regarding cryptocurrency's role in illicit finance. The Financial Action Task Force (FATF) has urged stronger actions to combat illicit finance in less regulated crypto markets.