A notable development has occurred in the cryptocurrency market. Stablecoin issuer Tether has carried out one of the largest asset freezes to date. According to on-chain data, the company has frozen a total of $344 million worth of Tether USD (USDT) assets on the TRON (TRX) network.
According to the shared data, the frozen assets were located in two separate wallets. One of these addresses contained approximately $212.9 million worth of USDT, while the other contained approximately $131.3 million worth of USDT.
The reason for this transaction is still unclear. Tether has not yet issued an official statement on the matter.
UPDATE
Tether has issued an official statement regarding the previously unknown transaction, announcing that the process was carried out in coordination with US authorities.
According to the company’s statement, a total of $344 million in Tether USD (USDT) assets were frozen in cooperation with the Office of Foreign Assets Control and US law enforcement. The operation involved approximately $212.9 million and $131.3 million in USDT balances located at two separate addresses on the TRON (TRX) network.
Tether stated that the decision to freeze the assets was made based on information shared by US authorities that was deemed to be linked to illegal activities. The statement added that assets can be quickly frozen if wallets are identified as being associated with attempts to evade sanctions, links to criminal networks, or other illegal activities.
Tether CEO Paolo Ardoino stated in a press release, “USDT is not a safe haven for illicit activities. We act quickly and decisively when credible links to sanctioned entities or criminal networks are identified.”
*This is not investment advice.