Tether Freezes $1.6M USDT Linked to Terror Financing

Tether has frozen $1.6 million in USDT related to Gaza-based terror financing networks, working alongside the U.S. Department of Justice.

This highlights Tether’s ongoing commitment to cooperating with authorities to ensure blockchain compliance and preventing misuse in the global financial system.

Tether Joins DOJ in Targeting $2M Terror Assets

This action by Tether forms part of a larger DOJ operation targeting $2 million in assets associated with terrorist organizations. The affected wallets are linked to the BuyCash Money and Money Transfer Company. Paolo Ardoino, CEO of Tether, emphasized the organization’s dedication to transparency and rapid compliance in tackling abuse on the blockchain.

USDT Market Stays Stable Amid $1.6M Freeze

No noticeable effects on USDT market liquidity were observed. The action targeted only the specific wallet addresses, maintaining the stability of other crypto assets and protocols. “Tether’s strength lies in the transparency of blockchain technology and our ability to act decisively when abuse is detected… The company remains committed to supporting global investigations and protecting the crypto ecosystem from abuse.” — Paolo Ardoino, CEO of Tether. This seizure underscores Tether’s ability to effectively collaborate with U.S. authorities, strengthening its reputation as a centralized, compliant issuer within the blockchain community.

Tether’s History of Asset Freezes and Security Role

Tether has engaged in several similar operations, such as its July 2025 seizure of R$32 million in suspected money laundering and assisting in recovering $225 million earlier this year. Experts from Kanalcoin note that Tether’s actions may fuel discussions about centralized control, yet they reinforce their role in maintaining blockchain integrity and security.