Tether, the largest stablecoin issuer company, announced its role in assisting the United States Secret Service (USSS) in freezing $23 million in illicit funds linked to transactions on the Russian-sanctioned cryptocurrency exchange, Garantex.
In our previous article, authorities in the U.S., Germany, and Finland collaborated to shut down the exchange accused of laundering money for criminal networks, including terrorist groups, seizing millions of US Dollars in illicit funds.
In addition, prosecutors alleged that Garantex processed hundreds of millions in illicit transactions despite U.S. sanctions, using tactics like shifting wallets daily to evade detection. If convicted, the exchange’s lead operators face up to 20 years in prison.
Tether’s Role in Law Enforcement Collaboration
This latest action is part of Tether’s ongoing collaboration with law enforcement agencies to curb financial crimes involving stablecoins. Over the past year, the company has worked with multiple authorities, including the U.S. Department of Justice (DOJ) and the USSS, to seize illicitly obtained USDT.
Per the company’s latest announcement, recent cases include a $9 million freeze on funds tied to a pig butchering scam and another $1.4 million from a tech support fraud network.
Notedly, Tether has blocked 2,090 wallets to date, including 960 in coordination with U.S. agencies. Over the past three years, the company has voluntarily responded to over 900 law enforcement requests to freeze funds, with approximately 460 coming from U.S. authorities.
“Tether’s ability to track transactions and freeze USDT linked to illicit activity sets it apart from traditional fiat and decentralized assets,” said Tether CEO Paolo Ardoino. “We take our responsibility to combat financial crime seriously and will continue working closely with global law enforcement agencies to prevent bad actors from exploiting stablecoin technology.”
Tether Strengthening Crypto Security Through Blockchain Monitoring
The company announcement revealed that blockchain analytics firm TRM Labs recorded $45 billion worth of illicit crypto transactions in 2024, accounting for just 0.4% of total crypto transaction volume.
Notably, a joint initiative between Tether, TRON, and TRM Labs—the T3 Financial Crime Unit—has frozen over $100 million in criminal assets in the last four months of 2024 alone.
Tether continues to enhance law enforcement capabilities by leveraging blockchain tracking tools, strengthening efforts to prevent financial crimes in the cryptocurrency ecosystem. The company remains committed to working alongside regulators to ensure transparency and security within the digital asset space.
