How USDT: Tether's Collaboration with Law Enforcement Protects Against Financial Crime and Assists Recovery.
- Glyn MacLean
- 10 hours ago
- 6 min read
The rise of cryptocurrencies has brought new opportunities and challenges. Among these challenges, financial crime involving digital assets has become a significant concern for governments and law enforcement agencies worldwide.
What is Tether doing to mitigate USDT based crime?
Tether (USDT), one of the most widely used stablecoins, plays a crucial role in addressing these issues. Through active collaboration with law enforcement, Tether helps recover illicit funds and block criminal activities, setting a strong example in the crypto space.
While many in law enforcement, crime fighting and prevention seek for Tether to do more, Tether has a fast growing track record of stepping up when the conditions are right, usually involved a solid chain of custody of digital assets and clear chain of evidence to a crime.
This next bit is like magic.
Tether has the capability to BURN (delete) USDT out of one wallet and then MINT (reconstitute) USDT in another wallet, but only under exceptional circumstances as required by law and in collaboration with law enforcement.
Tether’s Commitment to Fighting Financial Crime
Tether’s approach goes beyond simply issuing a stablecoin. The company has made a firm commitment to combating financial crime by working closely with law enforcement agencies around the world.
This commitment includes:
Direct collaboration with authorities
Sharing critical information on suspicious activities
Freezing wallets linked to illicit funds
By taking these steps, Tether helps ensure that USDT is used securely and responsibly, protecting both users and the broader financial ecosystem.
TETHER ECOSYSTEM Speaking of ecosystem high net worth users of Tether who have completed KYC checks and invested in large amounts of USDT have been supported by Tether to recover lost assets.
INCORRECT ADDRESS
Tether has directly assisted members who have sent USDT to the wrong address.
Extensive Global Partnerships
Tether has built a network of partnerships with over 290 law enforcement agencies across 59 jurisdictions worldwide.
This extensive collaboration includes direct communication channels with major U.S. agencies such as the FBI and the U.S. Secret Service. These partnerships allow Tether to respond quickly and effectively to requests related to criminal investigations.
The global reach of these partnerships means Tether can support investigations involving cross-border crimes, such as money laundering, fraud, and human trafficking. This cooperation strengthens the ability of law enforcement to trace and recover illicit funds that move through the crypto ecosystem.
Proactive Freezing of Illicit Funds
Unlike some competitors who only act after receiving formal legal orders, Tether takes a proactive stance. The company freezes wallets not only in response to legal demands but also voluntarily when it detects misuse. This includes cases involving:
Stolen funds
Sanctioned entities on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List
Wallets linked to scams or fraud
By freezing these wallets early, Tether prevents criminals from moving or cashing out illicit assets, making it harder for them to benefit from their crimes.
Significant Impact Through Asset Freezing
Tether’s efforts have led to the freezing of more than $3.2 billion in assets connected to illegal activities. This action has blocked over 3,660 wallets, disrupting criminal networks and protecting innocent users.
Some notable examples include:
Assisting the U.S. Department of Justice in seizing approximately $225 million linked to an international human trafficking syndicate operating in Southeast Asia.
Collaborating with the Royal Thai Police and U.S. Secret Service to freeze $12 million from a transnational scam network.
These cases highlight how Tether’s cooperation with law enforcement directly contributes to dismantling serious criminal operations.
Tether Supports Canadian Law Enforcement in Recovery of 460,000 USDT from Investment Fraud Scheme
15 September 2025 – Tether, the largest company in the digital assets industry, announced today that it assisted the Royal Canadian Mounted Police (RCMP) in recovering approximately 460,000 USDT that was connected to a sophisticated investment fraud scheme targeting an Ontario resident.
On July 3, the RCMP Federal Policing Criminal Operations Virtual Assets team executed a Special Warrant for Digital Assets, seizing 460,000 USDT (valued at approximately $640,000 CAD) as proceeds of crime. In its official announcement, the RCMP credited Tether’s cooperation as a decisive factor in the successful seizure.
“Tether’s ability to act quickly in freezing illicit funds has made it a trusted ally for law enforcement agencies worldwide,” said Paolo Ardoino, CEO of Tether. “We are proud to have assisted the RCMP in this case and remain committed to safeguarding the integrity of the global financial system.”
Tether continues to play an active role in global enforcement actions. In the past year, the company has been recognized by the U.S. Department of Justice for supporting a $225 million enforcement action, cooperated with the U.S. Secret Service to freeze $23 million tied to sanctioned exchange Garantex, and helped seize $9 million linked to the Bybit hack.
“In cases of stolen cryptocurrency, timing is everything,” said Sergeant Ryan Berry of RCMP Federal Policing Criminal Operations, as noted in the RCMP release. “Given the speed at which cryptocurrency assets can be transferred, the sooner investigators begin following the transactions, the higher the likelihood of interdiction and seizure during the money laundering process. Collaboration and assistance from the private sector are paramount in cryptocurrency investigations. The voluntary assistance of Tether was instrumental in the seizure and recovery of these funds.”
To date, Tether has frozen and blocked over $3.2 billion in USDT connected to illicit activity, leveraging real-time tracking, advanced analytics, and direct collaboration with more than 290 law enforcement agencies across 59 countries. These efforts include actions against wallets linked to sanctioned entities, terrorism financing, and major fraud schemes. In the last 12 months alone, Tether has voluntarily collaborated with law enforcement officials to block 3,660 wallets, 2,100 of which were in coordination with US agencies. SOURCE: https://tether.io/news/tether-supports-canadian-law-enforcement-in-recovery-of-460000-usdt-from-investment-fraud-scheme/
Specialized External Investigations Unit
To support these efforts, Tether has established an internal External Investigations Unit. This team includes former law enforcement officers, ex-public prosecutors, bank investigators, and blockchain analysts. Their expertise allows Tether to:
Analyze suspicious transactions quickly
Support law enforcement investigations with detailed insights
Enforce wallet freezes efficiently and accurately
This specialized unit ensures that Tether’s response to illicit activity is both swift and informed, increasing the chances of successful interventions.
Leveraging Blockchain Analytics Technology
Tether partners with leading blockchain analytics firms such as Chainalysis to enhance its ability to detect and track illicit funds. These tools provide detailed transaction histories and risk assessments, helping Tether identify suspicious wallets and patterns.
By integrating advanced technology with human expertise, Tether can monitor the flow of USDT across the blockchain, making it easier to spot and act on criminal behavior before it escalates.
Why Tether’s Approach Matters
The proactive and transparent approach taken by Tether sets a standard for the crypto industry. It shows that stablecoin issuers can play a vital role in protecting the financial system from abuse. This collaboration benefits everyone by:
Increasing trust in stablecoins and cryptocurrencies
Helping law enforcement recover stolen assets
Reducing the attractiveness of crypto for criminals
As regulators continue to focus on crypto compliance, Tether’s model demonstrates how cooperation and technology can work together to create a safer environment.
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