Tether Freezes $344 Million of USDT at Request of US Authorities

Tether, the issuer of the dollar-pegged stablecoin USDT, said it froze $344 million of its tokens at the request of US authorities.

The company said April 23 that it blocked $344 million in USDT held in two accounts after identifying them. The move was meant to prevent any further transfer of the funds, it said.

The frozen assets were tied to funds linked to sanctions evasion and criminal organizations, according to Tether. The company said it can restrict transfers from wallets once they are confirmed to be connected to illegal activity.

Tether said it applies a zero-tolerance policy to the criminal use of its financial products. It also said it has consistently complied with guidance tied to the US Treasury Department's Office of Foreign Assets Control and the Specially Designated Nationals list.

Tether is working with more than 340 law-enforcement agencies across 65 countries, the company said. Through that cooperation, it has supported more than 2,300 cases to date. A Tether representative said the company has frozen a total of $4.4 billion in assets, of which $2.1 billion was tied to US authorities.

Chief Executive Officer Paolo Ardoino said Tether is not a safe haven for illicit activity. The company will respond immediately and decisively if links to sanctioned entities or criminal networks are identified, he added. Tether's approach is to use blockchain transparency, real-time monitoring and cooperation with law enforcement to stop funds before they move.