Tether, the company behind the USDT stablecoin, has frozen multiple wallets collectively holding $182 million in USDT after receiving a request from law enforcement authorities.
Reports indicate that the restricted funds were held on the Tron blockchain and are tied to broader regulatory and enforcement efforts that have been underway for months. Sources familiar with the matter say the action forms part of an ongoing investigation, with Tether working closely with authorities to facilitate the freeze.
The affected wallets reportedly held between $12 million and $50 million each. The move aligns with Tether’s long-standing commitment to supporting regulatory bodies and law enforcement agencies in curbing illicit activity within the crypto ecosystem.
In December 2023, the stablecoin company had introduced a formal wallet-freezing policy, enabling it to block addresses in compliance with legal and regulatory directives, particularly from U.S. authorities. The company has consistently framed these actions as part of its broader strategy to maintain regulatory compliance and protect its operations.
“Tether also reserves the right to make disclosures to authorities in order to protect itself, any associates, and its customers,” the company stated.
It says it now works with over 310 law enforcement agencies across 62 jurisdictions and has frozen more than $3 billion in user funds in cooperation with these bodies.
Tether’s Market Dominance
The figure is notable given Tether’s dominant position in the stablecoin market. USDT remains the largest stablecoin by supply, valued at approximately $186 billion, accounting for about 60.66% of the total stablecoin market capitalization of over $308 billion.
The gap between USDT and its closest competitors remains wide. For context, Tether has frozen nearly thirty times more funds than Circle, whose USDC stablecoin has seen about $109 million frozen, according to data from AMLBot.
The development also reflects a wider trend across the crypto industry. Illicit activity continues to rise, with a 2025 report showing that crypto-related crime reached $158 billion—a 140% increase from the previous year. Stablecoins accounted for nearly 84% of that figure, underscoring their growing role in both legitimate and illicit financial flows.
Strengthening Regulatory Position Globally
Tether continues to expand its compliance footprint, securing formal recognition in multiple jurisdictions. In late 2025, the Abu Dhabi Global Market added USDT to its stablecoin register, allowing licensed entities to trade, settle, and use it under supervised conditions alongside Circle’s USDC and USD1.
At the same time, Tether secured a decade-long trademark for its Hadron tokenization platform in Russia, covering blockchain-based financial services and payment processing. These moves highlight Tether’s focus on regulatory alignment while reinforcing its global operational legitimacy.
