Tether Aids DOJ in Freezing Gaza‑Connected $1.6M USDT

Stablecoin issuer Tether has once again stepped into the spotlight of global compliance efforts. The firm announced today that it assisted the U.S. Department of Justice (DOJ) in freezing approximately $1.6 million worth of USDT. The funds were tied to wallets operated by BuyCash, a Gaza-based money-transfer company that U.S. authorities allege facilitated terrorist financing. 

Tether Freezes Wallet Linked to Terror Financing 

According to the press release, the freeze is part of a new civil forfeiture case led by the DOJ. It targets around $2 million in digital assets used to fund designated terrorist organizations. Tether worked alongside investigators to identify and freeze the suspects’ USDT holdings and traced their transactions on secondary markets.

The firm stated that it acted swiftly to freeze the associated USDT. It then reissued the tokens to assist law enforcement in the legal recovery process. Moreover, Tether CEO Paolo Ardoino highlighted that the public, traceable nature of USDT transactions enables quick identification of illicit flows. 

“Unlike traditional financial systems, where illicit flows often go unseen, USDT is traceable, transparent, and accountable. We remain fully committed to continuing to work with law enforcement around the world to disrupt financial crime, as demonstrated by our ongoing support of investigations in the U.S. and beyond, and to protect the integrity of the digital asset ecosystem,” Ardoino stated. 

Tether’s Broader Enforcement Record

Meanwhile, Tether is no stranger to compliance measures. As a major stablecoin issuer, the company can freeze assets during legal investigations or urgent scenarios like major security breaches. Over the past year, Tether has worked with global law enforcement on multiple seizures of illicit funds across various jurisdictions. 

Earlier this month, the firm partnered with Brazilian authorities to block approximately $6.2 million in a cross-border money laundering case. The operation involved the crypto platform Klever Wallet as part of the investigation. In June, Tether assisted the DOJ in a major enforcement action involving the seizure of approximately $225 million in USDT.

Additionally, Tether seized $23 million from the sanctioned Russian exchange Garantex alongside the U.S. Secret Service. The stablecoin issuer also stopped over $9 million linked to the Bybit hack. 

These proactive measures have positioned Tether as a key partner for global law enforcement. The firm reports having frozen more than $2.9 billion in illicit USDT across over 5,000 wallets. Of those, more than 2,800 were blocked in coordination with U.S. law enforcement agencies. 

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