Tether Freezes $182M In USDT Across Tron Wallets Likely Linked To Illegal Activity

Tether has carried out one of its largest single-day enforcement actions, freezing a significant amount of USDT on the Tron network.

In an action that appears to be linked to law enforcement, Tether has blocked a significant amount of USDT on the Tron blockchain.

On Jan. 11, Tether froze roughly $182 million in USDT across five Tron (TRX) based wallets in a single day, according to data from on-chain tracker Whale Alert. The holdings in each wallet that were targeted by the freezes ranged from roughly $12 million to $50 million.

Massive freeze executed with law enforcement cooperation

The actions appear to have been carried out in coordination with U.S. authorities, including the Department of Justice and the Federal Bureau of Investigation. However, Tether has not publicly detailed the precise reasons for the freezes.

Such moves typically follow investigations into scams, hacks, sanctions evasion, or other illegal uses of crypto.

Tether retains special administrative keys in the USDT smart contracts it issues, which let the company freeze tokens at the issuer level. This capability is part of how fiat-backed stablecoin issuers comply with legal requests and anti-money-laundering rules. 

The latest freezing event is one of the largest seen for USDT in a single day. For context, analytics firm AMLBot reports that Tether has frozen over $3 billion in assets from over 7,000 addresses between 2023 and 2025, a scale far beyond what other stablecoin issuers have done. 

Centralization sparks debate amid market dominance

The freeze comes as discussions around the centralized control of stablecoins grow. USDT is widely used across crypto markets, with more than $80 billion circulating on the Tron blockchain.

Unlike decentralized assets such as Bitcoin (BTC), stablecoins like USDT can be halted or blocked by their issuers when legal pressure arises. 

Chainalysis data shows stablecoins accounted for around 84 % of illicit crypto activity by the end of 2025, reflecting how dollar-pegged tokens have become the medium of choice in many on-chain frauds and sanctions-linked movements. 

Critics point out that this “kill switch” model makes stablecoins fundamentally different from decentralized cryptocurrencies and could push some governments or institutions to favor assets that cannot be frozen, such as Bitcoin or gold.