Tether Freezes $544 Million in Illicit Funds at Turkey’s Request

Tether froze $544M in illicit funds at Turkey's request, aiding a major investigation.

In late January, Istanbul’s prosecutor announced the seizure of $544 million in digital assets linked to illegal betting and money laundering. The operation was conducted with the assistance of Tether, according to Bloomberg.

The Turkish authorities stated that the funds, attributed to the wanted Veysel Sahin, were frozen at the request of a cryptocurrency company, which they declined to name.

“Law enforcement approached us, provided certain information, we reviewed it and acted in accordance with the country’s laws. This is how we proceed when working with the US Department of Justice, the FBI, and so on,” commented Tether CEO Paolo Ardoino in an interview with the business agency.

These actions are part of a large-scale investigation by Turkish authorities, with the volume of confiscated assets already exceeding $1 billion.

According to the analytics firm Elliptic, by the end of 2025, issuers of stablecoins, primarily Tether and Circle, blacklisted about 5,700 wallets holding approximately $2.5 billion. About three-quarters of these addresses contained USDT at the time of freezing.

Stablecoins are becoming core financial infrastructure. Understanding the financial crime patterns targeting them is essential for anyone operating in or overseeing the ecosystem.

Our latest blog breaks down the key typologies:
➡️ Industrialized cyber scams using stablecoins
➡️… pic.twitter.com/oPiWY5cN2j

— Elliptic (@elliptic) February 5, 2026

According to Tether, the company has assisted authorities in over 1,800 investigations across 62 countries. The volume of frozen stablecoins allegedly linked to criminal activities amounted to $3.4 billion.

“They are extremely responsive,” Bloomberg quoted Anchorage Digital Bank co-founder and CEO Nathan McCauley.

He noted that the company behind USDT has “noticeably improved its reputation” with law enforcement.

Anchorage is the issuer of USAT, a regulated “stablecoin” for the US market from Tether. The asset was officially launched in January.

Previously, the company had avoided operating in the United States for several years amid scrutiny from authorities. In 2021, the Department of Justice initiated an investigation into Tether over potential bank fraud. At that time, the USDT issuer paid a $41 million fine to settle allegations of misrepresenting the stablecoin’s backing, as charged by the Commodity Futures Trading Commission.

As reported, Tether’s net profit for 2025 exceeded $10 billion, approximately 30% lower than the previous 12 months.