- Tether freezes $12.3M USDT on Tron amid a crypto crime crackdown, likely tied to AML or sanctions concerns.
- T3 Financial Crime Unit has frozen over $126M in illicit assets since late 2024, enhancing real-time enforcement.
- Past actions include freezing $27M on Russian-linked Garantex and blacklisting $374K tied to North Korea’s Lazarus Group.
Tether, the issuer behind the world’s largest stablecoin USDT, has frozen $12.3 million worth of digital assets on the Tron blockchain, amid rising global concerns about illicit activity in the crypto space. The freeze occurred at 9:15 AM UTC on Sunday, according to on-chain data from Tronscan. Although Tether has yet to issue a formal public statement, the action is believed to be linked to potential violations of anti-money laundering (AML) laws or sanctions compliance regulations.
This enforcement marks yet another instance of Tether’s growing role in safeguarding the digital asset ecosystem. The company has become known for its active monitoring and freezing of assets associated with high-risk transactions or criminal activity. Tether CEO Paolo Ardoino stated that the company’s ability to trace and freeze assets in real time distinguishes it from traditional fiat systems and fully decentralized cryptocurrencies. He reaffirmed Tether’s commitment to fighting financial crime and working closely with global regulatory and enforcement agencies.
Tether’s asset-freezing authority is a core component of the T3 Financial Crime Unit (FCU), a strategic partnership involving Tether, the TRON blockchain, and blockchain intelligence firm TRM Labs. Since launching in late 2024, the FCU has already frozen over $126 million in illicit crypto assets, with $100 million frozen in just the final quarter of 2024. The unit was designed to assist global law enforcement in detecting and stopping the misuse of stablecoins in illicit financing, terrorism, and fraud.
Tether Freezes $27M USDT on Garantex
The USDT issuer has emphasized that its policies strictly align with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and its Specially Designated Nationals (SDN) list. Through this alignment, Tether routinely targets digital wallets associated with sanctioned individuals and high-risk entities. This includes action against wallets potentially involved in terrorism financing, nuclear proliferation, and cross-border financial crimes.
A key example of these enforcement measures occurred in March 2025, when Tether froze $27 million in USDT held on the Russian-linked crypto exchange Garantex. The move came shortly after the European Union’s 16th round of sanctions against Russia, citing the ongoing conflict in Ukraine. Garantex accused Tether of joining a financial war against the Russian crypto market, claiming that over 2.5 billion rubles worth of user funds had been blocked. The exchange later suspended its services and took its website offline for maintenance.
Despite being sanctioned by OFAC as early as April 2022, Garantex has continued to operate in various forms. A recent report from blockchain analytics firm Global Ledger, dated June 5, revealed that more than $15 million in reserves remained active and connected to the exchange.
Tether Targets Lazarus Group, Blacklists $374K in USDT
Tether’s actions also extend to cybercrime and state-sponsored hacking groups. The Lazarus Group, a North Korean cybercrime syndicate, has reportedly laundered over $3 billion in stolen crypto between 2009 and 2023. USDT issuers and other stablecoin issuers have played a key role in limiting their impact. In November 2023, the company blacklisted over $374,000 in USDT tied to Lazarus-related addresses, while other stablecoin firms froze a combined $3.4 million across suspect clusters.
Beyond enforcement, the USDT issuer is also expanding its footprint in real-world assets. On June 12, the company acquired a 32% equity stake in Elemental Altus Royalties, a Canadian public gold royalty firm. The deal involved purchasing 78.4 million shares from La Mancha Investments for CAD 1.55 per share, totaling approximately $89.4 million USD. Tether described the acquisition as a strategic investment aimed at diversifying its asset base and integrating long-term, stable assets such as gold and Bitcoin into its ecosystem.
According to Tether, the move reflects its broader vision of building a resilient and secure digital economy, where blockchain-powered assets can be anchored by real-world value. As regulatory scrutiny intensifies globally, Tether’s dual approach, combining aggressive financial crime prevention with long-term asset diversification, could serve as a model for the future of stablecoin governance.
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