Tether, the issuer of the USDT stablecoin, announced effective collaboration with the U.S. Department of Justice, resulting in the freezing and reissuing of $1.6 million in USDT tokens. These funds are linked to the financing of terrorist organizations through the BuyCash network operating in the Gaza Strip.
This is reported by Finway
Scope of Freezes and Cooperation with Law Enforcement
According to the U.S. Department of Justice, these actions are part of a broader case involving the civil forfeiture of nearly $2 million in digital assets used to support entities recognized as terrorist. Tether, in close coordination with U.S. law enforcement, promptly identified, froze, and reissued USDT belonging to suspicious wallets.
“The strength of Tether lies in the transparency of blockchain technologies and our ability to act decisively when abuse is detected. Unlike the traditional financial system, where illegal flows remain invisible, USDT is a traceable, transparent, and accountable asset,” said Tether CEO Paolo Ardoino.
To date, the company has frozen over 5,000 cryptocurrency wallets, with more than 2,800 of these in collaboration with U.S. agencies. The total amount of frozen assets exceeds $2.9 billion. Tether operates in accordance with the policies of the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and national regulators, adhering to the requirements of the Specially Designated Nationals List (SDN List).
Tether’s Global Initiatives
Over the past year, Tether has actively assisted law enforcement in various countries. In particular, it supported Brazilian authorities in freezing $6.2 million USDT in a money laundering case involving the Klever Wallet platform. Additionally, in June, the company helped the U.S. Department of Justice confiscate $225 million USDT linked to an international criminal network, and in March, it assisted the U.S. Secret Service in freezing $23 million related to the Russian exchange Garantex, as well as another $9 million in connection with the hacking of the Bybit exchange.
As of July 2025, Tether consistently adheres to international financial monitoring standards and remains a market leader in combating the illegal use of stablecoins. The company emphasizes its readiness to continue collaborating with law enforcement worldwide to combat financial crimes and protect the interests of digital asset users.