Tether Freezes $4.2 Billion in Illicit Funds to Date

In Crypto Regulations
March 01, 2026

Tether Freezes $4.2 Billion in Illicit Funds to Date

Tether, the issuer of USDT, has collaborated with law enforcement agencies to freeze assets linked to illegal activities, amounting to approximately $4.2 billion.

The firm announced this following recognition from the U.S. Department of Justice for its assistance in dismantling a “pig butchering” scam. During an operation in North Carolina, authorities seized nearly $61 million from fraudsters.

“This step underscores Tether’s commitment to leading the digital asset industry by complying with all legal requirements and acting transparently, aiding law enforcement worldwide in preventing crypto-related crimes,” the Tether statement read.

According to the analytics firm Elliptic, by the end of 2025, stablecoin issuers, primarily Tether and Circle, had blacklisted approximately 5,700 wallets holding around $2.5 billion. About three-quarters of these addresses contained USDT at the time of freezing.

In February, the coin issuer assisted in the seizure of digital assets worth $544 million at the request of U.S. authorities.

Tether clarified that it has directly interacted with more than 310 agencies from 64 countries over time.

The company highlighted several instances of assisting law enforcement in 2025, including:

  • the freezing and reissuing of 1.6 million USDT linked to terrorism financing in Gaza, at the request of the U.S. Department of Justice;
  • participation in blocking $6.2 million in assets in a cross-border money laundering scheme through Klever Wallet, in collaboration with Brazilian authorities;
  • the confiscation by government agents in Oklahoma City of approximately $225 million from operators of the “pig butchering” scheme;
  • the seizure by the U.S. Secret Service (USSS) of $23 million from the sanctioned exchange Garantex;
  • the arrest by Thai police and the USSS of approximately $12 million obtained through a transnational fraud network.

The market capitalization of USDT stands at about $183.7 billion. Tether’s flagship token dominates the “stablecoin” segment, which totals $311.5 billion.

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Source: CoinGecko.

The market supply of its main competitor, USDC, slightly exceeds $75.2 billion. However, in 2025, Circle’s coin surpassed USDT in terms of transferred value — $17.3 trillion compared to $12.9 trillion.

In January 2026, the total value of stablecoin transactions soared to a record $10.5 trillion. USDC accounted for $8.3 trillion, while USDT accounted for $1.7 trillion.

As reported, Tether’s net profit exceeded $10 billion last year. The company accumulated a reserve of 148 tonnes of physical gold, according to Jefferies.

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Steven M. Crimmins is a cryptocurrency strategist and freelance writer who has followed the blockchain industry since Bitcoin’s early days. Known for his sharp analysis of altcoins and trading strategies, Steven provides Satoshi News Africa readers with market-focused content grounded in research. He is especially interested in how African traders are adopting crypto as an alternative to traditional markets. Steven is also a podcast host, where he discusses emerging technologies and investment trends.