The Tron blockchain addresses are allegedly tied to money laundering
Tether has frozen more than $12.3 million in USDT on the Tron blockchain, continuing its ongoing effort to limit the use of its stablecoin in illicit activity. The freeze occurred at 9:15 AM UTC on Sunday, according to blockchain data from Tronscan. While Tether hasn’t officially commented on the specific accounts involved, the move is believed to be linked to compliance concerns such as potential sanctions violations or anti-money laundering risks.
The company has previously stated that it follows strict guidelines in line with the US Treasury’s Office of Foreign Assets Control (OFAC), including blocking addresses listed on the agency’s Specially Designated Nationals (SDN) list. This approach is part of Tether’s broader effort to ensure its stablecoin isn’t used for financing illegal operations, including terrorism and nuclear programs.
Earlier this year, Tether froze $27 million in USDT connected to Garantex, a crypto exchange sanctioned by OFAC in 2022 for failing to meet compliance standards. Garantex accused Tether of targeting the Russian crypto market, claiming blocked assets totaled more than 2.5 billion rubles. Despite that action, reports in June indicated that wallets linked to the exchange still held over $15 million in reserves.
Tether’s enforcement activities are coordinated through the T3 Financial Crimes Unit, a joint initiative involving the Tron Network and blockchain intelligence firm TRM Labs. Since its launch, the unit has helped freeze over $126 million in suspicious USDT transactions.
These efforts have gained urgency due to the activities of the Lazarus Group, a North Korea-linked hacking organization responsible for billions in stolen crypto. Tether has blacklisted several addresses tied to the group, including over $374,000 worth of stolen funds last November.
While the stablecoin’s ability to freeze assets has sparked debate among decentralization advocates, it remains a tool that regulators and companies are increasingly relying on to limit criminal activity in digital finance.
