Tether Freezes $4.2B in Crypto Tied to Illicit Activity
The stablecoin giant has locked billions in tokens connected to scams and criminal operations since 2023.
Tether just dropped a hefty number: $4.2 billion worth of its stablecoin tokens frozen over connections to illicit activity. That's not pocket change, even by crypto standards.
The El Salvador-based issuer says $3.5 billion of that total has been locked down since 2023 alone, signaling a major ramp-up in enforcement efforts. Among the frozen funds, $61 million was specifically linked to pig-butchering scams — those elaborate fraud operations where victims are groomed before being fleeced.
The move positions Tether as increasingly proactive on compliance, a notable shift for a company that's faced persistent scrutiny over transparency. Freezing tokens is one of the unique powers centralized stablecoin issuers hold — and Tether is clearly wielding it at scale.
Whether this quiets critics or just raises more questions about centralized control in crypto remains to be seen.