Tether Reportedly Freezes About $13.4 Million in USDT Across 22 Ethereum and Tron Wallets

• Tether froze $13.4M across 22 wallets on Ethereum and Tron.

• Tether attributes large freezes to law‑enforcement requests and AML/sanctions screening.

• Year‑to‑date freezes total billions; Tether reports blocking 3,660 wallets and cooperation with 290+ agencies.

Tether freezes USDT: $13.4M frozen across 22 wallets on Ethereum and Tron; read the COINOTAG report for details and implications.

Tether reported additional targeted freezes this week as part of an ongoing compliance effort that it says totals more than $3.2 billion in blocked USDT tied to illicit activity.

Tether freezes USDT again, this time targeting 22 wallets that together held roughly $13.4 million in USDT on the Ethereum and Tron networks. Blockchain analytics firm MistTrack identified the largest single freeze as an Ethereum address holding about $10.3 million; a Tron wallet held approximately $1.4 million.

MistTrack provided a public on‑chain alert documenting the October 16–17 action and listing the affected addresses and balances. The report highlights a single Ethereum address (0xecbd85e318e83f0358b404b41fb73daaacbeb59e) with about 10,301,346 USDT frozen and a Tron address (TYzDebkjMofvfWR6v7Ay1rcH7r9JjYMxQV) holding roughly 1,403,971 USDT.

What is Tether freezing USDT?

Tether freezes USDT when it identifies wallets linked to illicit activity or receives formal requests from law‑enforcement authorities. The company reports using on‑chain monitoring and cooperation with agencies to freeze access to tokens while investigations proceed.

How did this specific freeze occur and what was affected?

The October action involved 22 wallets on Ethereum and Tron totaling approximately $13.4 million in USDT, according to blockchain tracking by MistTrack. The largest portion—about $10.3 million—was concentrated in one Ethereum address. Tether has publicly logged similar interventions earlier in 2025, including freezes of $12.3 million in June and about 28.67 million USDT in April.

Why the wallets are frozen

Tether says freezes are executed primarily in response to formal requests from authorities such as the U.S. Department of Justice (DOJ) or other international law‑enforcement agencies, or when internal monitoring flags wallets linked to fraud, sanctions evasion, terrorism financing, or illicit marketplaces. These measures are presented by the company as part of its anti‑money‑laundering (AML) and sanctions compliance program.

In a public statement dated September 15, 2025, Tether said: “We have frozen over $3.2 billion in USDT connected to criminal activity, working with more than 290 law‑enforcement agencies in 59 countries.” The company also reports blocking roughly 3,660 wallets over the past year.

Legal challenges and disputes

Not all stakeholders accept Tether’s actions without challenge. Riverstone Consulting, a Texas‑based firm, has filed suit alleging that a $44.7 million freeze in April harmed their investments and that Tether bypassed formal international legal assistance channels. Riverstone claims the company did not follow standard mutual legal assistance procedures, including steps envisioned by the Bulgarian International Judicial Assistance Treaty.

What experts and on‑chain analysts say

Blockchain analytics providers such as MistTrack and others offer public on‑chain snapshots that trace frozen balances and wallet histories. Global Ledger, another blockchain analysis firm, previously flagged that after a March 2025 freeze of $28 million on the Russian exchange Garantex, roughly $15 million remained in active custody on that platform. These data points underscore the complexity of disentangling frozen funds from active coffers on centralized exchanges.

Frequently Asked Questions

How does Tether technically freeze USDT tokens?

Tether controls the smart‑contract issuances of USDT on certain blockchains and can mark specific addresses as frozen within its token management systems. When an address is frozen, tokens issued by Tether cannot be moved by the wallet owner until the freeze is lifted.

Can users contest a Tether freeze?

Yes. Affected parties may pursue legal remedies or provide documentation to Tether and relevant authorities to challenge a freeze. Riverstone Consulting has initiated litigation claiming wrongful freezing; outcomes will depend on court findings and applicable international procedures.

Key Takeaways

• Targeted action: Tether froze $13.4M across 22 wallets on Ethereum and Tron as part of ongoing compliance measures.
• Scale of enforcement: Tether reports having frozen over $3.2B and blocked about 3,660 wallets while cooperating with 290+ agencies.
• Legal friction: Lawsuits such as Riverstone’s show disputes over procedure and the balance between rapid enforcement and due process.

Conclusion

COINOTAG reporting: Tether freezes USDT remain a recurring enforcement tool applied to addresses flagged for illicit activity or frozen at the request of authorities. On‑chain analytics and legal challenges will continue to shape transparency and procedures around token freezes; market participants and custodians should monitor official statements from Tether, public blockchain traces from analytics firms, and ongoing litigation for developments. Published: October 17, 2025. Updated: October 17, 2025. By COINOTAG.

Sources referenced (plain text): MistTrack on‑chain alert, Tether public statement (September 15, 2025), Global Ledger blockchain analysis, Riverstone Consulting legal filings.

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TAGGED: Ethereum (ETH) Tether Tron (TRX)