Since the beginning of the T3 Financial Crimes Unit (FCU) in August 2024, a total of $126 million in USDt USDT$0.9989 has been frozen by the T3 Financial Crimes Unit (FCU), which was led by the stablecoin issuer Tether Freezes $1B , the Tron network, and TRM Labs.
The Federal Credit Union (FCU) collaborates with law enforcement authorities worldwide to investigate and freeze illegal transactions. In 2024, the FCU monitored approximately three billion USD transactions.
Over $56M Frozen in Money Laundering
According to the organization, money laundering accounted for over half of the frozen monies, which amounted to $56 million; the monies used in investment schemes amounted to $36 million, making them the second largest category of frozen assets.
Asset freezes and financial surveillance have become contentious topics in the cryptocurrency community despite their ability to return stolen funds to scam victims and discourage violent crime. Decentralization and privacy maximalists say that cryptocurrencies administered centrally represent a substantial threat to self-autonomy and create the possibility of financial censorship by governments and huge enterprises.
Tether Freezes $835M in 2023
In October 2022, Tether froze 8.2 million USD associated with the Ethereum network. The stablecoin issuer did not disclose a justification for the action then, and they had frozen 215 USD addresses on Ethereum throughout that year. The total amount of USDt blocked by the corporation in 2022 was over 360 million dollars.
In October 2023, the stablecoin issuer froze USDt thought of over $873,000, allegedly in connection with terrorist actions in Israel and Ukraine. This brought the total USDT that the business had frozen to $835 million. In November 2023, Tether Freezes $1B participated in an investigation led by the United States Department of Justice that focused on a human trafficking gang operating in Southeast Asia.
Tether Freezes $225M in Scams
Regrettably, frozen stablecoins related to the organization were stolen through “pig butchering” tactics as part of the investigation. The total value of these bonds was $225 million. This technique aims to form a long-term relationship with a victim to gain their confidence so they can steal their money later.
Tether Freezes Venezuelan Assets
Additionally, in April 2024, Tether Freezes committed to freezing Venezuelan assets for $1B to comply with the restrictions imposed by the United States Office of Foreign Asset Control on the South American nation.
The threat manifested itself following the publication of accusations that Venezuela’s state-owned oil company Petroleos de Venezuela (PDVSA) had used stablecoins to finance oil transactions to circumvent sanctions imposed by the United States.
FAQs
How much has Tether frozen in 2024?
As of 2024, Tether has frozen over $1 billion, including amounts linked to money laundering, scams, terrorist activities, and sanctioned entities.
Why did Tether freeze Venezuelan assets?
Tether froze Venezuelan assets in April 2024 to comply with sanctions imposed by the U.S. Office of Foreign Assets Control (OFAC), which accused Venezuela of using stablecoins to circumvent oil-related sanctions.
What are "pig butchering" scams?
Pig butchering scams involve criminals building long-term relationships with victims to gain their trust and then stealing money. Tether froze $225 million worth of stablecoins related to this type of fraud.
How does Tether's asset freezing impact the cryptocurrency community?
Asset freezes and financial surveillance are controversial in the cryptocurrency space, especially among decentralization advocates who view them as a threat to privacy and financial freedom.
