Tether announces freezing $4.2 billion of its digital currencies, what is the reason?

Tether announced that it has frozen around $4.2 billion of its digital currencies linked to illicit activities, in a move that reflects Tether's increasing role in supporting global law enforcement efforts. Tether explained that the majority of these assets were frozen over the past three years, with accelerating cooperation between Tether and the relevant authorities.

Tether confirmed that it is capable of freezing its currencies remotely within users' digital wallets at the request of official entities, which grants Tether a direct role in combating crimes related to cryptocurrencies. This move comes at a time when the volume of Tether's dollar-linked circulating currencies has risen to over $180 billion, compared to about $70 billion three years ago, reflecting Tether's expanding influence in the stablecoin market.

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