Tether has frozen more than $344 million worth of its USDT stablecoin across two wallet addresses at the request of US law enforcement authorities.
The company said the action targeted funds linked to “activity tied to unlawful conduct”, though it did not disclose specific details about the alleged offences or entities involved.
“When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively,”
Said Tether CEO, Paolo Ardoino.
Tether added that such freezes are typically associated with sanctions evasion, organised crime or other illicit financial activity, reflecting its ongoing cooperation with global enforcement agencies.
The move has reignited debate within the crypto industry over the power of centralised stablecoin issuers to freeze assets, particularly following criticism of Circle for not blocking funds linked to a recent hack involving its USDC token.
On-chain investigator ZachXBT previously argued that issuers should act more aggressively to protect users, while others have warned such interventions undermine the decentralised ethos of digital assets.
The freeze follows a string of decentralised finance exploits, including the Drift Protocol hack and the Kelp exploit, which together saw hundreds of millions of dollars drained from crypto platforms.