July 24, 2025 – Tether, the largest company in the digital asset industry, announced today that it has helped US authorities freeze and reissue approximately $1.6 million of USDT connected to wallets related to purchases, a Gaza-based financial network related to terrorist financing operations.
The action is part of a broader civil forfeiture case released by the U.S. Department of Justice (DOJ), which includes approximately $2 million in digital assets used to support designated terrorist organizations. The wallet was identified in the secondary market through coordination with law enforcement investigators. After receiving the warning, Tether freezes the related funds and works quickly to reissue the USDT, assisting in the legal recovery process.
Over the past year, Tether has actively worked with law enforcement agencies around the world to help seizure multiple illegal funds across various jurisdictions. Earlier this month, Brazilian authorities acknowledged Tether’s support for blocking $32 million (approximately USD 6.2 million) on a major cross-border money laundering scheme, including criminal organizations run through popular crypto platform Klever Wallet. In June, Tether was granted by the DOJ for assistance with major enforcement measures, including a seizure of approximately $225 million in USDT. In March this year, Tether supported the US Secret Service by freezing $23 million with illegal funds related to the Russian licensed exchange Garantex transaction, and assisting in freezing $9 million connected to Bybit Hack. As of today, Tether has blocked over 5,000 wallets, assisted law enforcement, and over 2,800 people are working with US agencies.
Tether has frozen more than $2.9 billion in USDT previously linked to illegal activities, helping over 275 law enforcement agencies across 59 jurisdictions. The company maintains a responsive wallet freezing policy in accordance with OFAC specially designated citizens (SDN) lists and national regulatory bodies, and is quickly included to ensure illegal activities tied to licensed individuals or criminal networks.
“The strength of Tether lies in the transparency of blockchain technology and its ability to act critically when abuse is detected. Unlike traditional financial systems where illegal flows are invisible, USDT is traceable, transparent and accountable.” Tether CEO Paolo Aldoino. “We are fully committed to working with law enforcement agencies around the world to disrupt financial crime and protecting the integrity of our digital asset ecosystem, as demonstrated by our continued support of research in the US and beyond.”
This latest action shows Tether’s skill in responding to real-time threats, highlighting the benefits of operating on a public, transparent blockchain that can track, freeze and recover illegal funds. For more information about Tether’s proactive efforts and actions, visit TetherFacts.com.
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