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Tether Says It Has Frozen $4.2 Billion in USDT as DOJ Seizes $61 Million Tied to Scams

Law‑enforcement agencies are increasingly using the issuer’s wallet‑blacklist tools to stop illicit crypto flows across borders.

Overview

  • The Justice Department announced the seizure of nearly $61 million in USDT linked to so‑called pig‑butchering investment scams.
  • Tether reports roughly $3.5 billion of the $4.2 billion in frozen tokens was blocked since 2023 as cases accelerated.
  • USDT circulation now exceeds $180 billion, expanding the market impact of freezes and investigations.
  • Past actions included freezes tied to human trafficking, conflict‑related activity in Israel and Ukraine, and sanctioned exchange Garantex, alongside collaborations with the Secret Service, Brazil, Thailand and OKX.
  • The Financial Action Task Force has urged tougher national enforcement, and researchers estimate crypto money‑laundering receipts reached about $82 billion last year.