Tether said it froze roughly $4.2 billion of USDT linked to suspected illicit activity, with about $3.5 billion frozen since 2023. The company also reported assisting U.S. authorities in blocking nearly $61 million tied to “pig‑butchering” romance and investment scams.

Tether disclosed that since 2023 it has frozen approximately $4.2 billion of its USDT stablecoin that it attributes to suspected criminal activity, including roughly $3.5 billion frozen in the 2023–2026 period. The firm highlighted cooperation with U.S. law enforcement that helped block nearly $61 million associated with so‑called pig‑butchering schemes, a form of crypto romance and investment fraud in which victims are groomed and persuaded to move funds into digital assets. Tether framed the actions as evidence that stablecoin issuers can play a central role in tracing and disrupting cross‑border financial crime, leveraging on‑chain transparency, compliance controls and rapid response to court orders. The disclosure underscores both the increasing regulatory scrutiny of stablecoins and the operational challenges of policing large, liquid token supplies tied to myriad counterparties. Tether said these freezes were taken to prevent further criminal misuse and to support investigations, while noting the broader debate over how private issuers and public authorities should coordinate to safeguard the digital asset ecosystem.