Tether Freezes $12.3M USDT on Tron in Major Anti-Crime Crackdown

Tether has taken decisive action against illicit activity, freezing $12.3 million worth of USDT on the Tron network.

The move underscores the stablecoin issuer''s commitment to combating financial crime—even as critics question whether it''s enough to clean up crypto''s wild west reputation.

This freeze represents one of the largest single actions in Tether''s ongoing collaboration with law enforcement agencies worldwide.

TLDR

• Tether froze $12.3 million in USDT on the Tron Network due to suspected illicit activity.
• The freeze took place at 9:15 am UTC according to on-chain data from Tronscan.
• Tether enforced the action in line with anti-money laundering and sanctions compliance policies.
• The move aligns with Tether’s ongoing efforts to prevent criminal misuse of its stablecoin.
• Tether collaborated with TRON and TRM Labs through the T3 Financial Crime Unit to identify threats.

Tether has frozen $12.3 million in USDT on the Tron Network in response to suspected illicit transactions and AML risks. The freeze occurred at 9:15 am UTC Sunday, based on on-chain data, although Tether has not released a public statement. The decision aligns with the company’s enforcement practices, which comply with global financial regulations and sanctions lists.

Tether has implemented a strict wallet-freezing policy targeting high-risk activities, terrorism financing, and nuclear proliferation across its supported networks. This enforcement action is consistent with its alignment with the U.S. Treasury’s OFAC Specially Designated Nationals List. The policy has allowed Tether to prevent misuse of USDT by malicious actors operating across various jurisdictions.

According to CEO Paolo Ardoino, Tether’s capacity to track and freeze assets helps law enforcement mitigate blockchain-based financial crimes effectively. The platform’s monitoring tools distinguish it from both traditional fiat systems and decentralized cryptocurrencies, strengthening trust in its ecosystem. Tether works with international agencies to preserve the integrity of stablecoin technology and reduce unlawful exploitation.

USDT Freeze Raises Focus on TRON Activity

The recent freeze on the TRON blockchain has added to growing concerns about transaction flows linked to illegal activity or sanctioned parties. While the full details remain undisclosed, on-chain monitoring pointed to connections that may violate existing AML or sanctions guidelines. Tether took proactive steps without external pressure, reinforcing its autonomous enforcement capability.

LATEST: Tether freezes $12.3M in $USDT tied to suspicious tron addresses. pic.twitter.com/WJr2ApEfyp

— MrRebel.eth (@rebelethpromos) June 16, 2025

Tether, TRON, and TRM Labs formed the T3 Financial Crime Unit to address blockchain-linked financial threats, especially illicit flows via USDT. Over four months in 2024, the unit froze more than $100 million in suspected criminal assets using joint intelligence. This collaboration demonstrates a coordinated strategy that maximizes transparency and compliance across multiple networks.

TRM Labs reported illicit crypto volumes fell to $45 billion in 2024, accounting for only 0.4% of the market’s total volume. Despite the decline, Tether remains active in monitoring any suspicious or non-compliant behaviour within its ecosystem. The firm has implemented advanced tracking measures to respond faster and more efficiently to threats.

Tether Takes Action Against Garantex Amid Russia Sanctions

On March 6, Tether froze $27 million in USDT associated with the Garantex crypto exchange following sanctions targeting Russian entities. The EU sanctioned Garantex on February 26 as part of its 16th package of actions related to the Ukraine conflict. Following the freeze, Garantex suspended services and placed its website under maintenance.

The exchange accused Tether of directly targeting the Russian crypto market, claiming frozen wallets held over 2.5 billion rubles. OFAC had earlier sanctioned Garantex in April 2022 due to AML violations and compliance failures. Despite these actions, a blockchain analysis on June 5 revealed $15 million in active reserves that were still linked to Garantex.

Tether’s enforcement actions indicate ongoing vigilance and coordination with Western sanctions and compliance bodies. It has successfully blocked criminal entities from using USDT for laundering or cross-border evasion. The platform continues to enforce its policy by actively scanning for addresses matching sanctioned profiles.

Tether Expands with Strategic Gold Investment

On June 12, Tether acquired a 32% stake in Elemental Altus Royalties, a Canadian public Gold royalty firm. The deal involved 78.4 million shares purchased at CA$1.55 each, totaling roughly $89.4 million. Tether aims to increase its exposure to gold as part of a broader diversification strategy.

The firm stated that this investment reflects its push toward integrating long-term, stable assets like gold and Bitcoin into its framework. By aligning stablecoin infrastructure with real-world assets, Tether seeks to enhance the resilience of its digital economy ecosystem. This acquisition supports its goal of blending liquidity, security, and strategic value.