Tether, the company behind the popular USDT stablecoin, said it worked with U.S. investigators to freeze and reissue about $1.6 million tied to a Gaza-based money network accused of financing terrorism.
The funds were linked to “Buy Cash Money and Money Transfer Company (BuyCash),” a remittance operation said to support designated terror groups. U.S. officials uncovered wallets holding roughly $2 million in cryptocurrency meant for these groups.
Working with investigators who tracked the wallets on cryptocurrency markets, Tether quickly froze the coins and replaced them with new tokens to aid lawful recovery of the funds.
Freezing and Reissuing USDT
Once investigators flagged the wallets, Tether swiftly froze the funds and created replacement USDT tokens. This step ensures that the seized value remains available for lawful recovery instead of disappearing into inaccessible accounts.
A company spokesperson said this process highlights how transparent ledgers make illicit flows easier to track and contain.
Record of Cooperation
Over the past year, Tether has teamed up with agencies around the world to halt illegal fund movements.
In Brazil, regulators credited Tether with helping block R$32 million, about $6.2 million, in a cross‑border money laundering ring tied to Klever Wallet.
In June 2025, the DOJ praised Tether for aiding in the seizure of roughly $225 million in USDT.
Earlier this spring, the U.S. Secret Service tapped Tether to freeze $23 million linked to the sanctioned exchange Garantex, and another $9 million connected to the $1.4 billion Bybit hack.
Scale of Enforcement
To date, Tether says it has blocked more than 5,000 wallets in cooperation with over 275 law enforcement bodies across 59 jurisdictions.
Of those, more than 2,800 were done at the request of U.S. agencies. In total, the company has frozen over $2.9 billion in USDT tied to a range of illicit activities.
Also Read: Stablecoin Giant Tether Holds $8B in Gold Stored in a Swiss Vault It Built & Fully Controls
Tether points to its wallet‑freezing policy as evidence of its commitment to global regulations. The firm acts under the U.S. Office of Foreign Assets Control Specially Designated Nationals list as well as other national rules.
By flagging and halting transactions involving sanctioned individuals or criminal groups, Tether aims to protect the integrity of digital assets and deter misuse.
Leadership View
“Tether’s strength lies in the transparency of blockchain technology and our ability to act decisively when abuse is detected,” said Paolo Ardoino, Tether’s CEO.
He noted that, unlike many traditional financial systems, where illicit flows remain hidden, every USDT move is visible on a public ledger. Ardoino added that Tether will continue to work with law enforcement worldwide to fight financial crime.
Response to New Stablecoin Rules
Minutes after President Donald Trump signed the GENIUS Act into law, Paolo Ardoino and Circle’s CEO, outlined how their firms plan to meet the new requirements.
The act imposes strict anti‑money laundering checks and auditing standards on stablecoin issuers, aiming to bring the tokens under closer regulatory oversight.
This latest enforcement action underscores how blockchain firms and regulators can team up to tackle money laundering and terrorism financing.
Also Read: Unraveling a Massive Crypto Crime: 2 Russian Allegedly Laundered $530 Million Via Tether
