Tether assisted U.S. authorities in freezing approximately $1.6 million worth of USDT, tied to terrorism financing operations based in Gaza. | Credit: Bill Clark/CQ-Roll Call, Inc via Getty Images.
* Tether has frozen $1.6 million in USDT.
* The firm has now frozen over $2.9 billion in USDT linked to illicit activity.
* The U.K.’s Serious Fraud Office exercised new powers to freeze crypto assets for the first time last week.
Tether has announced that it assisted U.S. authorities in freezing approximately $1.6 million worth of USDT, tied to terrorism financing operations based in Gaza.
This move underscores the increasing collaboration between digital asset companies and government agencies in combating illicit financial flows.
Tether Assists U.S. Law
Tether, the world’s largest digital asset company, stated in a press release that it froze wallets linked to the Gaza-based Buy Cash Money and Money Transfer Company.
The identified wallets, holding $1.6 million in USDT, were flagged in the secondary market through collaboration with U.S. investigators.
Tether reported that it “worked swiftly” to freeze the related funds and reissue the USDT to aid in “the lawful recovery process.”
“Tether’s strength lies in the transparency of blockchain technology and our ability to act decisively when abuse is detected,” said Paolo Ardoino, CEO of Tether.
“Unlike traditional financial systems, where illicit flows often go unseen, USDT is traceable, transparent, and accountable,” he added.
Tether’s Ongoing Support
To date, Tether has frozen over $2.9 billion in USDT connected to illicit activities and has supported more than 275 law enforcement agencies in the U.S.
In March, Tether helped the U.S. Secret Service freeze $23 million in illicit funds tied to transactions on a Russian-sanctioned exchange.
In total, the company said it has blocked over 5,000 wallets associated with unlawful activity.
“We remain fully committed to continue working with law enforcement around the world to disrupt financial crime, as demonstrated by our ongoing support of investigations in the U.S. and beyond, and to protect the integrity of the digital asset ecosystem,” Ardoino stated.
U.K. Freezes Crypto Assets for First Time
Last week, the U.K.’s Serious Fraud Office (SFO) announced its first-ever crypto asset freeze, following newly granted powers in 2024.
In a press release on July 18, the SFO revealed it had frozen £10,865.76 in Bitcoin and £289.30 in USDC linked to Richard Yeowart, a suspect in the ongoing Arena TV fraud investigation.
Arena TV, a former live events and sports broadcaster, collapsed in 2021 amid allegations it secured nearly £300 million in fraudulent loans using fabricated broadcast equipment assets.
The frozen assets will be held for up to nine months to allow time for affected parties to come forward.
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