Tether Freezes $344 Million in USDT on Tron Following U.S. Law Enforcement Request

Apr 23, 2026

Tether froze $344 million in USDT across two Tron blockchain addresses on Thursday in coordination with OFAC and U.S. law enforcement, marking one of the stablecoin issuer's largest compliance actions on record. The freeze targeted wallets containing approximately $213 million and $131 million, allegedly linked to sanctions evasion or criminal networks. Tether has now frozen over $4.4 billion in assets overall through partnerships with more than 340 law enforcement agencies across 65 countries. The action contrasts sharply with competitor Circle's approach, which faced criticism and a class action lawsuit for not freezing funds after the $285 million Drift Protocol hack linked to North Korean hackers, prompting Drift to switch from USDC to USDT and accept $148 million in Tether funding for user recovery.

Tether's $344 Million USDT Freeze in Coordination with U.S. Authorities

▪Tether froze more than $344 million in USDT across two Tron addresses on Thursday in coordination with U.S. authorities.
▪The $344 million Tether freeze marked one of the stablecoin issuer's largest compliance actions on record.
▪One frozen Tron wallet contained approximately $213 million in USDT.

Tether's Expanding Compliance Infrastructure and Track Record

▪Tether has frozen more than $4.4 billion in assets overall.
▪In November 2023, Tether froze about $225 million in USDT linked to a Southeast Asia human-trafficking and pig butchering scam investigation.
▪Tether has frozen $2.1 billion in assets tied specifically to U.S. authorities.
▪In January 2026, Tether froze roughly $182 million across five Tron wallets.

Contrasting Approaches: Tether vs. Circle on Fund Freezing

▪The Drift Protocol attack involved $285 million and has been linked by investigators to North Korean hackers.
▪Tether is providing $148 million in funding as part of a recovery plan to help make Drift Protocol users whole.
▪The Kelp DAO exploit involved $292 million and has been linked by investigators to North Korean hackers.

Perspective of Tether

▪Tether's $344 million freeze demonstrates the company's willingness to take swift action on large-scale compliance matters.

Perspective of Drift Protocol

▪Drift Protocol accepted Tether's $148 million funding contribution as part of efforts to compensate affected users.
▪Drift Protocol's decision to abandon USDC for USDT reflects dissatisfaction with Circle's response to the $285 million attack.

Perspective of Cryptocurrency industry observers

▪Tether's $4.4 billion in total frozen assets demonstrates the extent of centralized control stablecoin issuers can exercise over blockchain-based currencies.