Tether Freezes Millions in Assets Amid DOJ, FBI, and Secret Service Assistance

By: Isha Das

Tether, the world's largest stablecoin issuer, has frozen 326 wallets holding USD $435 million in response to requirements from the U.S. authorities. The company released letters sent to Senator Cynthia M. Lummis and Congressman J. French Hill, clarifying its endeavors to prevent illicit use of stablecoins. The company also reassured its commitment to becoming a 'world class partner' to the United States.

As a measure against potential illicit activities, Tether implemented a 'wallet-freezing policy' since Dec 1. The policy includes freezing all wallets listed on the Office of Foreign Assets Control's (OFAC) Specially Designated Nationals (SDN) list. In a recent effort to bolster security, Tether onboarded the Secret Service onto its platform and is making strides to include the FBI.

Tether has aided the Investigations of 19 jurisdictions globally, in particular efforts to identify and freeze wallets associated with Hamas and other terrorist organizations. Tether's robust KYC/AML program, coupled with support from Chainalysis and WorldCheck, enables the company to maintain up-to-date information and monitor transactions for suspicious activity across major blockchains.