Tether has frozen over $12.3 million worth of USDT on the Tron Network, citing concerns regarding illicit activities and potential violations of Anti-Money Laundering (AML) regulations. The funds were blocked at 9:15 am UTC on June 15, according to Tronscan. While Tether has not publicly stated the reasons for the freeze, it aligns with their policy to combat money laundering, nuclear proliferation, and terrorist financing, which is also consistent with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctions list. Tether's compliance efforts have led to significant amounts of crypto being prevented from being laundered. The company, along with the Tron Network and TRM Labs, initiated the T3 Financial Crimes Unit (FCU) to support law enforcement in freezing illicit crypto transactions. This incident follows earlier actions against other exchanges like Garantex. Critics argue that Tether's ability to freeze assets raises concerns about decentralization, but the company asserts that these measures are vital for maintaining the integrity of the crypto ecosystem.

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