Tether Freezes $344M in USDT After OFAC Flags Wallets

On April 23, 2026 Tether froze $344 million in USDT across two blockchain addresses after the Office of Foreign Assets Control and U.S. law enforcement identified the wallets as linked to sanctions evasion and criminal activity. The assets were restricted before they could be moved further.

The action was coordinated with OFAC and multiple U.S. law enforcement agencies and follows OFAC guidance on the Specially Designated Nationals list. Investigators flagged the addresses for sanctions evasion, criminal network activity or other illicit use, prompting the freeze.

Paolo Ardoino, Tether’s CEO, emphasized the company’s use of public blockchain data to monitor transactions in real time: “USDT is not a safe haven for illicit activity. When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively.”

Tether reported it works with more than 340 law enforcement agencies across 65 countries and has supported over 2,300 cases globally, including more than 1,200 connected to U.S. authorities. Those efforts have resulted in the freezing of more than $4.4 billion in assets, with more than $2.1 billion tied to U.S. agencies.

The company cited recent cooperation with the U.S. Department of Justice in two enforcement actions related to pig-butchering fraud that led to seizures of nearly $61 million and about $225 million.

Tether described its enforcement approach as continuous monitoring and direct coordination with investigators during active cases, contrasting that with platforms that respond only after funds have been dispersed.

The April 23 freeze follows other recent incidents in the crypto sector, including the KelpDAO hack and the Drift Protocol breach, where coordinated responses helped trace and recover some stolen tokens.

Tether reiterated a zero-tolerance policy for criminal use of its products and will continue real-time monitoring and cooperation with law enforcement on active investigations.