Tether freezes $85k in stolen usdt, raising new questions about stablecoin control
Tether has frozen $85,877 in USDt linked to stolen funds, collaborating with law enforcement. This action contributes to Tether's record of freezing over $2.5 billion in USDt associated with illicit activities and blocking more than 2,090 wallets. Centralized stablecoin issuers like Tether can freeze transactions at the smart contract level, allowing rapid responses to hacks and regulatory pressures. Notable freezes include $225 million in November 2023 related to human trafficking and $700 million in June 2025 tied to Iran-linked entities. Tether's CEO emphasizes the company's role in combating financial crime, but critics express concerns that such actions may undermine decentralization and financial sovereignty, likening Tether's role to that of a central bank digital currency (CBDC).
