Tether freezes $12.3 million USDT linked to suspicious Tron addresses in latest crackdown

Tether has frozen $12.3 million worth of USDT tied to suspicious Tron addresses, reinforcing its commitment to combating money laundering and sanctions evasion. The freeze, executed on Sunday morning, shows the growing scrutiny over illicit crypto transactions, particularly those involving suspicious Tron addresses linked to high-risk entities.

Blockchain data from Tronscan confirmed the freeze, though Tether has yet to issue an official statement. The action aligns with the company’s strict compliance policies, which include enforcing OFAC sanctions and preventing funds from flowing to sanctioned entities or criminal networks.

Tether’s aggressive stance against suspicious Tron addresses

The latest freeze follows a pattern of proactive measures by Tether to halt questionable transactions. Earlier this year, the company collaborated with TRM Labs and the Tron Network to form the T3 Financial Crimes Unit (FCU), which has already frozen $126 million in USDT tied to illicit activities.

Analysts suggest that the suspicious Tron addresses blocked this week may be connected to sanctions violations or money laundering schemes. Given Tether’s past actions, including freezing $27 million linked to the sanctioned Garantex exchange, experts believe the company is ramping up efforts to curb crypto-enabled financial crimes.

How Tether identifies and blocks suspicious Tron addresses

Tether’s ability to freeze funds stems from its centralized control over USDT, allowing it to blacklist wallets involved in illegal transactions. The company adheres to OFAC’s Specially Designated Nationals (SDN) List, ensuring compliance with U.S. sanctions.

Recent investigations reveal that suspicious Tron addresses often funnel money through decentralized exchanges (DEXs) or cross-chain bridges to obscure their origins. However, blockchain forensics firms like Chainalysis and TRM Labs have improved detection methods, making it harder for bad actors to evade scrutiny.

A March 2025 report highlighted that Tether’s freezes have disrupted over $200 million in illicit crypto flows, including funds tied to North Korea’s Lazarus Group.

Garantex and Lazarus Group: A recurring problem

The suspicious Tron addresses frozen this week may be part of a broader network linked to high-profile cybercriminal groups. In 2023, Lazarus Group laundered $200 million in stolen crypto, with some funds passing through Tron-based wallets.

Despite sanctions, some exchanges like Garantex continued processing transactions until Tether intervened. In March 2025, the company froze $27 million in USDT tied to the exchange, dealing a significant blow to its operations.

Crypto community divided over Tether’s freeze powers

While regulators applaud Tether’s efforts, some decentralization advocates argue that freezing funds contradicts crypto’s censorship-resistant ethos. However, with suspicious Tron addresses increasingly used for illicit finance, the industry faces mounting pressure to adopt stricter compliance measures.

Tether’s latest action sends a clear message: The company will not tolerate abuse of its stablecoin. As blockchain analytics improve, more suspicious Tron addresses will likely face similar crackdowns.

What’s next for Tether and Tron?

With $12.3 million USDT now locked, attention turns to whether these suspicious Tron addresses are linked to known criminal syndicates. If past trends hold, law enforcement may soon reveal further details.

For now, Tether’s aggressive stance sets a precedent—crypto’s wild west days are fading, and compliance is now non-negotiable.