Tether, a leading blockchain-enabled platform, said it helped U.S. authorities freeze and reclaim about $1.6 million in USDT. The funds were linked to wallets involved with Buy Cash Money and Money Transfer Company, a network based in Gaza tied to terrorist financing.
This action was part of a civil forfeiture case brought by the U.S. Department of Justice. It involved around $2 million in digital assets thought to support terror groups. Law enforcement spotted the suspicious wallets on the secondary market, and Tether froze the funds before reissuing the USDT to support recovery efforts.
Over the past year, Tether has helped global law enforcement with several investigations. Earlier this month, Brazilian authorities thanked Tether for blocking R$32 million (around $6.2 million) tied to a cross-border money laundering scheme via Klever Wallet. In March, Tether helped the U.S. Secret Service freeze $23 million linked to transactions on the sanctioned exchange Garantex, and another $9 million connected to the Bybit hack. In June, the DOJ acknowledged Tether’s help in seizing about $225 million in USDT.
So far, Tether has frozen more than 5,000 wallets and worked with over 2,800 U.S. law enforcement cases. It has frozen over $2.9 billion in USDT tied to illegal activity and assisted more than 275 agencies across 59 countries.
Tether says it follows a strict wallet‑freezing policy in line with the U.S. sanctions list (OFAC) and other international rules. The company said it aims to catch funds tied to sanctioned individuals or criminal networks.
“Tether’s strength lies in the transparency of blockchain technology and our ability to act decisively when abuse is detected. Unlike traditional financial systems, where illicit flows often go unseen, USDT is traceable, transparent, and accountable,” said Paolo Ardoino, Tether’s Chief Executive in a press release. “We remain fully committed to continue working with law enforcement around the world to disrupt financial crime.” Tether’s full statement highlights its ongoing work to protect the digital asset space.
Tether’s work shows that public blockchains can help track and stop illegal money. By working with law enforcement, Tether is helping to fight financial crime.
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