Tether Freezes $344 Million in USDT on Tron Tied to Illicit Activity

USDT is a U.S. dollar-pegged stablecoin centrally issued by Tether. Even when it circulates on the public Tron blockchain, the issuer can blacklist designated addresses to prevent transfers or redemptions. The case shows that the U.S. Treasury Department's Office of Foreign Assets Control, or OFAC, can work with industry participants to trace sanctions evasion and criminal funds. It also underscores that such "digital dollars" remain subject to law enforcement action.

On April 23, 2026, Tether froze more than 344 million USDT across two Tron addresses at the request of OFAC and U.S. law enforcement agencies. The addresses held approximately 212.9 million and 131.3 million USDT, respectively. On May 15, U.S. law firm Gerstein Harrow LLP filed a court motion seeking the turnover and distribution of the Iran-linked assets to existing judgment creditors.