Tether freezes $182M in USDT as part of law enforcement cooperation

Tether did not disclose why these specific wallets were frozen or say whose request triggered the action. After the freeze, industry discussions offered multiple explanations, with many pointing to the possibility that the funds are tied to a Venezuela-related case.

It is known that Venezuela has recently increased its use of cryptocurrencies to settle fuel-related transactions amid sanctions targeting the state oil company PDVSA. The U.S. Treasury required PDVSA’s clients and suppliers to halt operations without a specific license, while Venezuelan authorities shifted part of their contracts to USDT payments and required new buyers to have a crypto wallet. PDVSA clients said such payments often fail compliance checks, which pushes deals through intermediaries. Under sanctions, these intermediary chains and opaque tanker-shipping logistics make it harder to identify the ultimate owner of funds, which is why analysts link the freeze to oil-related flows.

Tether has previously publicly confirmed close engagement with U.S. agencies and active cooperation with law enforcement. Tether has said it helped the U.S. Department of Justice freeze 326 wallets holding a combined 435 million USDT as part of cooperation with the U.S. Secret Service and the FBI.

Separately, public cases have referenced investigations in which the U.S. Department of Justice announced the seizure of nearly $9M in USDT, noting assistance from Tether.

In 2024, Tether, TRON, and TRM Labs launched a joint initiative called the T3 Financial Crime Unit (T3 FCU) to monitor illicit transactions and freeze USDT on the Tron network. TRM Labs provides technical support and contributes specialists to investigations.

The Tron freeze is a reminder that stablecoins with a centralized issuer can be restricted during investigations, so they shouldn’t be treated as a safe haven from law enforcement actions.