Tether, the issuer of the world’s largest stablecoin USDt, has frozen over $12.3 million worth of assets on the Tron network as part of its ongoing efforts to combat illicit activity in the crypto space.
According to blockchain data from Tronscan, the freeze occurred at 9:15 a.m. UTC on June 15.
Although Tether has not released an official statement regarding the action, it is likely related to concerns over potential sanctions violations or Anti-Money Laundering (AML) risks.
“Tether enforces a strict wallet-freezing policy to combat money laundering, nuclear proliferation, and terrorist financing, and is aligned with the OFAC Specially Designated Nationals (SDN) List,” the company stated in a March 7 blog post.
The policy reflects compliance with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctions framework.
Tether’s ability to freeze assets drew renewed attention on March 6, when it froze $27 million in USDT linked to the Garantex crypto exchange.
On the same day, Garantex announced a suspension of its operations, alleging that “Tether has entered the war against the Russian crypto market and blocked our wallets worth more than 2.5 billion rubles [$27 million].”
The move followed earlier action by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), which sanctioned Garantex in April 2022 for allegedly ignoring Anti-Money Laundering (AML) and other regulatory requirements.
Despite the earlier asset freeze, blockchain analytics firm Global Ledger reported on June 5 that over $15 million in active reserves remain linked to Garantex.
Funds Linked to Lazarus Group Under Scrutiny
While some advocates of decentralization have criticized Tether’s ability to freeze assets, the mechanism has proven effective in stopping illicit actors from laundering hundreds of millions in crypto.
According to a January 2025 report by Cointelegraph, the T3 Financial Crimes Unit (FCU)—a joint initiative by Tether, the Tron Network, and blockchain intelligence firm TRM Labs—successfully froze $126 million worth of USDT in its first six months of operation. The FCU was established to support global law enforcement in tracking and freezing illicit crypto transactions.
One of the most prominent threats in the space remains the North Korea–backed Lazarus Group. First emerging in 2009, the group has stolen over $3 billion in crypto assets, including more than $200 million laundered between 2020 and 2023—underscoring the need for continued vigilance and coordinated action.
In November 2023, Tether blacklisted over $374,000 in stolen funds, while three of the four major stablecoin issuers collectively froze an additional $3.4 million held across a cluster of addresses linked to the Lazarus Group, according to blockchain investigator ZachXBT.
