Tether Freezes Over Half a Billion Dollars in Turkey Amid Criminal Probe

Crypto stablecoin issuer Tether has frozen more than $544 million in cryptocurrency following a request from Turkish authorities.

The funds were linked to Veysel Sahin, who prosecutors allege ran illegal online betting platforms and laundered the proceeds.

The seizure is part of a broader crackdown on underground gambling and financial networks in Turkey, where authorities have already confiscated over $1 billion in assets during related investigations.

Tether CEO Paolo Ardoino told Bloomberg that the company acted after reviewing official requests and complied fully with Turkish law.

“Law enforcement came to us, they provided some information, we looked at the information and we acted in respect of the laws of the country,” Ardoino said. “And that’s what we do when we work with the DOJ, when we work with the FBI, you name it.”

Tether and Circle Blacklist Thousands of Wallets Worldwide

Tether isn’t alone in compliance efforts. Analytics firm Elliptic reported that stablecoin issuers, mainly Tether and Circle, have blacklisted roughly 5,700 crypto wallets holding around $2.5 billion as of late 2025. About 75% of these frozen wallets contained USDT.

Tether revealed it has assisted authorities in over 1,800 investigations across 62 countries, resulting in $3.4 billion in frozen USDT linked to suspected criminal activity.

These measures come amid continued scrutiny of USDT, which has occasionally been linked to sanctions evasion and illicit fund transfers.

Blockchain researchers have also traced large-scale USDt transactions tied to Venezuelan nationals and other international suspects.

High-risk addresses accounted for roughly 5% of all stablecoin flows in 2024, with Tether’s token making up more than 70% of that volume, according to forensic reports from Bitrace.

USDt Market Cap Hits Record Despite Legal Scrutiny

Despite ongoing investigations and regulatory attention, Tether’s USDt continues to grow.

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In the fourth quarter of 2025, the stablecoin reached a record market capitalization of $187.3 billion, an increase of $12.4 billion even amid a broader crypto downturn caused by the October liquidation cascade.

Meanwhile, rival stablecoins struggled: Circle’s USDC remained largely flat, and Ethena’s USDe lost about 57% of its value.

USDt usage also surged, with monthly active wallets climbing to 24.8 million, representing roughly 70% of all stablecoin-holding addresses.

Quarterly transfer volume reached $4.4 trillion across 2.2 billion transactions, setting new records for on-chain activity.

This growth underscores the continued dominance of USDT in the stablecoin sector, despite the legal and regulatory hurdles it faces globally.

Tether’s Global Compliance and Controversies

Tether’s collaboration with authorities isn’t limited to Turkey. The firm has previously cooperated with the US Department of Justice, the FBI, and regulators in multiple jurisdictions.

While these actions demonstrate Tether’s willingness to comply with laws, critics argue that the size of its network and opaque flows make it a magnet for illicit activity.

Some analysts suggest that USDT’s widespread adoption among crypto traders, hedge funds, and exchanges amplifies its importance to the market, making its regulatory compliance crucial for global financial stability.

What’s Next?

• Turkish authorities are likely to continue freezing funds linked to illegal gambling networks.

• Tether may face additional regulatory scrutiny in other countries as global authorities track stablecoin use in illicit transactions.

• Investors and exchanges should monitor USDT activity, particularly wallets flagged as high-risk.

• The stablecoin’s growth trajectory suggests continued dominance in the market, but legal challenges may impact short-term liquidity and adoption.

Summary

• Tether freezes $544 million in Turkey tied to alleged illegal online betting and money laundering.

• 5,700 wallets containing $2.5 billion were blacklisted by Tether and Circle by late 2025.

• USDt’s market capitalization hit $187.3 billion, continuing to grow despite regulatory and legal pressures.

• Global cooperation includes over 1,800 investigations in 62 countries, highlighting Tether’s compliance efforts.

• High-risk wallet activity, sanctions evasion concerns, and massive on-chain transfers underline ongoing scrutiny of USDt in crypto markets.