Tether Frozes Terrorist-Related Funds Again
Date: 2025-07-25 Author: Gabriel Deangelo Categories: BUSINESS
The issuer of the popular USDT stablecoin, Tether, announced another operation to freeze cryptocurrency assets that were associated with supporting terrorist structures in the Gaza Strip. This time, the company blocked and reissued 1.6 million USDT. These actions were made possible thanks to close cooperation with the US Department of Justice and other government agencies.
The official documents of the Department of Justice indicate that this measure is part of a larger civil forfeiture process, which covers about $2 million in digital currency. These funds were used to finance organizations recognized as terrorists through the BuyCash network operating in Gaza.
Tether CEO Paolo Ardoino emphasizes that the openness of blockchain technologies allows for the timely detection of illegal transactions and prompt response to abuses. He emphasizes that, unlike the traditional sector, where it is often difficult to track the movement of money, USDT remains a transparent and accountable instrument.
This practice has long been common for Tether. Over the past year, the company has acted as a partner of law enforcement agencies in a number of high-profile cases. For example, it assisted Brazilian authorities in freezing 6.2 million USDT in a money laundering case through Klever Wallet. In June, Tether participated in the seizure of 225 million USDT in the United States associated with an international criminal network. In the spring, the organization helped the US Secret Service freeze $23 million, allegedly belonging to the Russian exchange Garantex, and another $9 million in the Bybit hacking case.
As of the end of July 2025, the total number of crypto wallets blocked by Tether exceeded 5,000, of which more than 2,800 were with the direct assistance of American services. The total volume of frozen assets reaches $2.9 billion. The company carries out all actions in accordance with the regulations of the US Office of Foreign Assets Control and based on the so-called SDN List.
Tether's management assures that it is ready to continue working in conjunction with government agencies in different countries to combat financial crime and strengthen trust in the cryptocurrency market.
Amid tightening regulatory rules, the company may face new challenges. Donald Trump recently signed the first cryptocurrency law in the country's history, the GENIUS Act, which introduces new standards for the circulation of stablecoins. This document may affect the activities of Tether and other issuers, limiting their flexibility and expanding their area of responsibility to government agencies.
Earlier, experts noted that the new bill could change the balance of power in the industry not only in the United States, but also in other countries, including Ukraine, where discussions are also underway about the legal status of digital assets.
