<\/p>\n
Stablecoin issuer Tether<\/a> said it has frozen $344 million in stablecoins linked to illegal activity.<\/p>\n The company announced<\/a> the freeze Thursday (April 23), saying it came following information shared by U.S. authorities about activity connected to unlawful actions.<\/p>\n \u201cWhen wallets are identified as connected to sanctions evasion, criminal networks, or other illicit activity, Tether can move to restrict those assets,\u201d the company wrote in a blog entry. \u201cThat work has become a routine part of the company\u2019s response to lawful requests from authorities in the U.S. and abroad.\u201d<\/p>\n Tether, whose USDT is the largest stablecoin by volume, added that it has been involved in supporting law enforcement in 2,300 cases around the world, leading to the freezing of more than $4.4 billion in assets.<\/p>\n Public blockchains<\/a>, the company argued, offer investigators and issuers something cash can\u2019t: a visible trail that lets them follow transactions, flag wallets and freeze assets.<\/p>\n \u201cUSDT is not a safe haven for illicit activity,\u201d said Paolo Ardoino<\/a>, CEO of Tether. \u201cWhen credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively. Recent events have shown what happens when platforms fail to move quickly, enforcement breaks down, users are exposed, and trust erodes.\u201d<\/p>\n Advertisement: Scroll to Continue<\/p>\n<\/div>\n The company\u2019s announcement comes in the wake of a high-profile crypto crime that has erased around $9 billion from the decentralized finance (DeFi) lending space: last week\u2019s exploit<\/a> of the Kelp DAO<\/a> platform.<\/p>\n In the most recent episode of the \u201cFrom the Block\u201d<\/a> podcast, PYMNTS CEO\u00a0Karen Webster<\/a>\u00a0and\u00a0Ryan Rugg<\/a>, global head of digital assets for\u00a0Citi Treasury and Trade Solutions<\/a>, examined why that exploit was not just a technical failure, but a behavioral one.<\/p>\n While earlier attacks targeted private keys or flawed smart contracts, this breach was aimed at the connective tissue of blockchain<\/a> ecosystems: the messaging layer that allows for interoperability across chains.<\/p>\n \u201cPast hacks were due to stolen keys or bugs in smart contracts; this one was convincing the vault the thief was actually the owner,\u201d Rugg said.<\/p>\n Meanwhile, Tether is helping another DeFi exchange\u2014Drift Protocol\u2014relaunch after a separate breach<\/a> earlier this month, giving that company $147 million in funding<\/a>.<\/p>\n