Tether, the largest stablecoin issuer, has frozen over $12.3 million USDT on the Tron network, citing suspicious activity. This action, taken on Sunday at 9:15 AM UTC, is likely linked to concerns about sanctions violations or money laundering.
This isn't Tether's first such move; they maintain strict wallet control policies to combat financial crimes, aligning with the U.S. Treasury's OFAC SDN list. Previously, in March, they froze $27 million USDT on the Garantex platform, which was sanctioned by OFAC in 2022 for AML non-compliance.
Tether's Financial Crimes Unit (FCU), in collaboration with Tron Network and TRM Labs, has frozen $126 million USDT in the past six months, aiding global law enforcement. This centralized control, despite criticism from decentralization advocates, is crucial in combating large-scale money laundering. For instance, in November 2023, Tether froze over $374,000 linked to North Korea's Lazarus Group, which has laundered hundreds of millions in stolen crypto. This highlights Tether's role in mitigating illicit financial flows within the crypto space.