Tether, the issuer of the largest stablecoin USDt, has frozen over $12.3 million worth of USDT on the Tron Network due to concerns over potential illicit activity and Anti-Money Laundering (AML) violations. The freeze occurred at 9:15 am UTC on June 15, as revealed by Tronscan data. Although Tether has not officially commented on the incident, it has a stringent wallet-freezing policy aimed at preventing money laundering and adhering to the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctions list. This incident follows prior actions where Tether froze millions in USDT linked to illicit activities, demonstrating the company's commitment to combatting financial crime in the crypto space. Critics have raised concerns regarding Tether's asset-freezing capabilities, but the actions have successfully halted substantial funds from being laundered. Tether, in collaboration with the Tron Network and TRM Labs, continues to tackle illicit transactions and support law enforcement efforts to curb illegal activities linked to cryptocurrencies.

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