Tether Freezes $13.4 Million USDT in Ethereum and Tron Wallets
Stablecoin issuer Tether has frozen over $13.4 million in USDT across 22 wallets on the Ethereum and Tron blockchains, according to data from analytics platform MistTrack. The company continues its effort to combat illicit crypto transactions by locking funds it deems suspicious.
Details of the Freeze
The frozen wallets collectively held roughly $13.4 million in USDT, including two major addresses with balances of $10.3 million and $1.4 million. While the company did not disclose the reasons for these specific actions, the move aligns with Tether’s policy of blocking addresses linked to fraud, money laundering, or sanctioned entities.On-chain data shows that the freeze was executed simultaneously on both Ethereum and Tron, reflecting Tether’s cross-chain control mechanisms. The impacted wallets can no longer transfer, redeem or swap the frozen tokens.
A History of Aggressive Action
Since its launch in 2016, Tether has blocked over 5,188 addresses, freezing as much as $3 billion in USDT linked to illegal activity or theft. The company regularly cooperates with law-enforcement agencies and blockchain analytics firms to trace and halt funds involved in ransomware, scams, and sanction violations.While critics argue that such centralized control contradicts the decentralization ethos of crypto, supporters view Tether’s actions as a necessary layer of security and compliance in a regulatory gray zone.
Transparency and Accountability Challenges
Tether has not provided specific information on the criteria used to identify the 22 wallets as “suspicious.” The company has previously stated that it acts upon verified requests from law enforcement and forensic partners. However, critics note the lack of public transparency around its blacklist decisions and timelines for potential appeals by affected users.Impact on the Stablecoin Market
The latest freeze did not affect USDT’s market peg or liquidity, but it revived debate over centralized power in stablecoins. With Tether’s market capitalization surpassing $110 billion, the company’s ability to halt transactions on-chain remains a critical topic for crypto policy makers and investors alike.Conclusion
Tether’s latest freeze of $13.4 million underscores the ongoing tension between financial compliance and decentralization. As authorities tighten oversight of digital assets, the balance between user privacy and law enforcement cooperation will define the next phase of the stablecoin industry.Editorial Team — CoinBotLab