Tether Has Blocked $3.5 Billion in Crime-Linked Stablecoins Since 2023

The stablecoin issuer currently has more than $180 billion of its dollar-pegged stablecoin in circulation, according to the report.

The firm is able to remotely freeze its stablecoins held in users’ wallets in response to law enforcement requests, per the report.

The U.S. Department of Justice and Homeland Security Investigations (HSI) said in a Tuesday (Feb. 24) press release that Tether helped federal agents seize $61 million worth of Tether (USDT) stablecoin after the agencies determined the funds were at cryptocurrency addressed allegedly associated with launderers of proceeds stolen by fraudsters.

“The Department of Justice and HSI acknowledges Tether for its assistance in transferring these assets,” the press release said.

In its own press release about this case, Tether said it collaborates with more than 310 law enforcement agencies across 64 countries and that it has worked with international agencies to track, freeze and seize illicit funds.

The company highlighted cases in 2025 in which it worked with U.S. and other authorities to freeze funds tied to terrorism financing, money laundering, “pig butchering” scams, a sanctioned exchange and a transnational scam network.

“Tether’s cooperation with the Department of Justice highlights the need for blockchain to empower law enforcement to act quickly and effectively against criminal activity,” Tether CEO Paolo Ardoino said in the release. “We are committed to supporting the authorities in freezing illicit assets, protecting victims and ensuring that USDT continues to serve as a transparent tool for global commerce.”

It was reported Feb. 3 that Stripe’s push into stablecoins is encountering early friction as its newly acquired crypto startup Bridge becomes linked to transactions allegedly involving scammers and sanctioned entities.

In September, it was reported that Circle was exploring ways to reverse transactions involving its stablecoins. Circle President Heath Tarbert said at the time that a mechanism allowing refunds in cases of fraud or disputes would help the stablecoin industry become more mainstream.