Tether Freezes $515M USDT-Tron’s Dominant Crackdown Shocks Crypto World!

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Tether Freezes Over $515M in USDT Across Tron and <a href="https://jpyxx.com/eth-usd/">Ethereum</a>

Tron accounted for nearly all recent USDT freeze activity, with over $506M restricted by Tether.

Tether has blocked over $515 million in USDT cryptocurrency connected to hundreds of addresses known for illegal activity, primarily on the Tron and Ethereum blockchains. According to blockchain security firm BlockSec, most of this recent activity involves enforcement actions on the Tron network. Increased attention on illegal cryptocurrency transactions is leading stablecoin companies like Tether to become more involved in global investigations. Recent cases involving the DSJ Exchange and BG Wealth Sharing have further highlighted Tether’s practice of freezing funds suspected of being involved in illicit activities.

Tether Blacklisted Over 4,000 Addresses Across Tron and Ethereum in 2025

As of May 7, 2026, BlockSec identified 371 addresses flagged for suspicious activity. The vast majority – 329 – were on the Tron network, with the remaining 42 on Ethereum. Frozen assets totaled around $506 million in USDT on Tron, while approximately $8.73 million was frozen on Ethereum, indicating that most of the restricted activity occurred on Tron.

Add multiple language and better mobile support to our USDT freeze monitor. Have fun!

— BlockSec (@BlockSecTeam)

BlockSec monitors transactions on the blockchain to track when USDT is frozen, unfrozen, or destroyed. Their data shows a lot of USDT activity happens on the Tron network, likely because it’s a major hub for USDT transfers. We often see large amounts of USDT moving between wallets and being deposited on exchanges through this chain.

Recent research by BlockSec revealed that Tether blocked 4,163 different digital addresses on the Tron and Ethereum blockchains in 2025. This action effectively froze approximately $1.26 billion in USDT. Both Tron and Ethereum were the main networks where Tether took steps to enforce restrictions on its stablecoin.

ZachXBT Reports $38.4M Frozen Following Cross-Chain Tracking Operation

New information from blockchain researcher ZachXBT links recent account freezes to the failures of DSJ Exchange and BG Wealth Sharing. ZachXBT reports that the suspected Ponzi scheme took in over $150 million from users before stopping all withdrawals.

I analyzed transaction timings and identified withdrawals connected to Solana and Tron deposits made to Binance. I also found corresponding Tron withdrawals and shared this information with the appropriate people.

It resulted in $38.4M frozen by Tether on May 4 (yesterday) with another $3.1M+ frozen at various…

— ZachXBT (@zachxbt)

A recent investigation by ZachXBT revealed that criminals moved over $92 million worth of cryptocurrency across multiple blockchains between April 27th and May 3rd. He worked with Tether, Binance Security, OKX, and U.S. law enforcement during the process.

According to reports, this action resulted in $38.4 million in Tether funds being frozen on May 4th. Exchanges and other related services also added further restrictions at that time.

Tether Says USDT Restrictions Aim to Combat Crime and Sanctions Violations

The crypto world remains split on whether stablecoins should be centrally controlled. Some argue that freezing wallets goes against the core idea of self-custody and takes away users’ control of their money. Others believe these controls are essential for stopping illegal activities like ransomware attacks, helping enforce sanctions, and preventing major financial crimes.

Law enforcement efforts are now going beyond just investigating fraud. For example, Tether recently blocked $344 million in USDT cryptocurrency connected to wallets used by Iran’s Islamic Revolutionary Guard Corps as part of an operation called Economic Fury. Later reports suggested that cryptocurrency linked to Iran and seized by authorities totaled close to $500 million.

Tether reports working with over 340 law enforcement agencies in 65 countries. They also stated that they will restrict access to wallets if funds are linked to illegal activities like breaking sanctions, criminal organizations, or other unlawful financial dealings.

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2026-05-08 20:20