Tether, the issuer of the world’s largest stablecoin USDT, has frozen a total of $13.4 million across 22 cryptocurrency addresses on the Ethereum and TRON blockchains, according to on-chain monitoring firm MistTrack.
The freeze, executed on October 16, 2025, involves two major wallets, one on Ethereum holding roughly $10.3 million and another on TRON with about $1.4 million.
The move is part of Tether’s ongoing efforts to block funds linked to illicit activities, including fraud, money laundering, and terrorism financing.
The company frequently collaborates with law enforcement agencies, such as the U.S. Department of Justice and the FBI, to freeze wallets associated with sanctioned entities or criminal operations.
Tether’s proactive approach aims to maintain trust in the stablecoin ecosystem by ensuring that USDT cannot be misused for illegal purposes.
This latest freeze is not the first time Tether has taken such action. Earlier in 2025, the company froze $44.7 million in USDT at the request of Bulgarian authorities, which subsequently led to a lawsuit from Texas-based Riverstone Consulting claiming substantial financial losses.
Such actions underscore the delicate balance Tether must maintain between compliance and the decentralized principles underpinning cryptocurrencies.
Market participants have reacted with caution, as these freezes can affect liquidity and market dynamics for USDT-dominated trading pairs.
Analysts note that while regulatory cooperation is vital for preventing crime and maintaining stablecoin integrity, frequent or large-scale freezes can create operational uncertainty for traders and institutions relying on USDT for transactions or as collateral in decentralized finance protocols.
Traders, investors, and crypto platforms are advised to monitor Tether’s actions closely. The company’s enforcement strategy highlights the evolving intersection between regulatory oversight and digital assets, where centralized stablecoin issuers increasingly play a role in policing blockchain activity.
As Tether continues to act against suspicious wallets, the broader crypto ecosystem must weigh the trade-offs between compliance, decentralization, and market efficiency.