KEY TAKEAWAYS
- Tether collaborates with the US Secret Service to freeze $23 million in illicit funds linked to sanctioned exchange Garantex.
- Over the past year, Tether has assisted in seizing millions in USDT tied to scams, working closely with U.S. law enforcement agencies.
- Tether has frozen over $2.5 billion in USDT related to illicit activities, demonstrating its commitment to anti-money laundering efforts.
- Through collaboration with global agencies, Tether enhances the detection and recovery of illicit funds, setting itself apart in the crypto industry.
On March 7, 2025, Tether, a leading company in the digital assets industry, announced its collaboration with the United States Secret Service (USSS) to freeze $23 million in illicit funds. These funds were linked to transactions on Garantex, an exchange under Russian sanctions. The announcement was made here.
Over the past year, Tether has been involved in multiple cases with law enforcement agencies. This includes assisting the U.S. Department of Justice and the USSS in seizing $9 million in USDT tied to a ‘pig butchering’ scam and another $1.4 million from a tech support scam network. More broadly, Tether has worked closely with law enforcement to block 2,090 wallets, including 960 in coordination with U.S. agencies.
Efforts in Combating Illicit Activities
In the past three years, Tether has voluntarily assisted in freezing illicit USDT in over 900 law enforcement requests, with approximately 460 of these requests coming from U.S. agencies. To date, Tether has frozen more than $2.5 billion in USDT tied to illicit activities, reinforcing its commitment to anti-money laundering efforts.
Working alongside more than 235 law enforcement agencies across 55 jurisdictions, Tether enforces a strict wallet-freezing policy. This policy aims to combat money laundering, nuclear proliferation, and terrorist financing. Tether is also aligned with the OFAC Specially Designated Nationals (SDN) List, targeting wallets associated with sanctioned individuals and high-risk activities.
Collaboration with Global Agencies
Tether’s proactive measures have played a critical role in expediting the detection and recovery of illicit funds. According to Tether CEO Paolo Ardoino, the company’s ability to track transactions and freeze USDT linked to illicit activity sets it apart from traditional fiat and decentralized assets. Ardoino emphasized Tether’s responsibility to combat financial crime and its ongoing collaboration with global law enforcement agencies.
According to TRM Labs, illicit crypto transactions declined to $45 billion in 2024, representing just 0.4% of total crypto transaction volume. As part of a joint effort between Tether, TRON, and TRM Labs, the T3 Financial Crime Unit successfully froze over $100 million in criminal assets in the last four months of 2024 alone.
Tether remains resolute in its commitment to combat illicit activities and safeguard the integrity of the cryptocurrency ecosystem. By leveraging advanced tracking tools, Tether enhances law enforcement’s ability to trace USDT transactions across multiple blockchains, strengthening the global fight against illicit financial flows.
Why This Matters: Impact, Industry Trends & Expert Insights
Tether’s collaboration with the United States Secret Service to freeze $23 million in illicit funds linked to Garantex highlights its ongoing efforts to combat financial crime in the crypto space.
A recent TRM Labs report highlights the importance of robust compliance measures and real-time intelligence in the crypto industry. This aligns with Tether’s actions in freezing funds linked to Garantex, demonstrating the need for continuous monitoring and advanced analytics to detect hidden links to illicit entities.
As per insights from MoneyCheck, Tether’s collaborations with law enforcement have significantly impacted the crypto market by enhancing security and reducing illicit activities. This supports the impact of Tether’s proactive role in freezing funds and underscores its commitment to a safer crypto environment.
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