Tether Freezes Billions in Assets Over Illicit Activity Links

Tether, the largest stablecoin issuer in the world, has taken significant steps to combat illicit activity linked to its tokens. According to reports, the company has frozen a staggering $4.2 billion of its USDT tokens over the past three years.

The majority of these frozen assets, totaling $3.5 billion, have been locked down since 2023. This move comes as authorities around the world continue to crack down on crypto-related crime. Tether has worked closely with law enforcement agencies, including the U.S. Justice Department, to freeze nearly $61 million worth of tokens linked to 'pig-butchering', a form of fraud that involves scammers forming personal relationships with their victims.

This development highlights the growing concerns about the role of crypto in illicit finance. The Financial Action Task Force (FATF) has called on countries to take stronger action to combat illicit finance in crypto markets, which are often less regulated than mainstream financial systems.