Stablecoin issuer Tether said it has frozen $4.2 billion of its USDT tokens over links to illicit activity, largely within the past three years.
The El Salvador-based company has more than $180 billion of its dollar-pegged stablecoin in circulation, up sharply from $70 billion three years ago.
Tether can remotely freeze tokens held in private wallets when requested by law enforcement agencies investigating financial crimes.
This week, the firm helped the U.S. Justice Department freeze nearly $61 million in USDT tied to “pig-butchering” fraud schemes.
The latest action brings total frozen assets to $4.2 billion, with $3.5 billion blocked since 2023, according to a company spokesperson.
Tether has also restricted wallets linked to human trafficking, terrorism, and warfare, including accounts connected to sanctioned Russian exchange Garantex.
Global regulators have intensified scrutiny of crypto markets, with the Financial Action Task Force urging tougher measures against crypto-related money laundering.
Blockchain researchers estimate at least $82 billion was laundered through cryptocurrencies last year, underscoring mounting compliance pressures across the sector.
