Tether said it has adopted a new policy to freeze wallets associated with OFAC sanctions as part of a broader effort to strengthen ecosystem security and align more closely with regulators and law enforcement. The company described the move as a “proactive” and “voluntary” initiative, and said wallets listed on the SDN list are subject to freezing. The announcement fits into a larger pattern of Tether increasing its compliance posture after years of criticism that stablecoin issuers can move funds quickly but have uneven sanction controls. Reporting around the policy notes that Tether has already cooperated with U.S. authorities in freezing large sums tied to sanctioned or illicit activity, including a separate April 2026 action involving more than $344 million in USDT across two addresses. The significance is that a major stablecoin issuer is making sanctions enforcement more systematic at the infrastructure level, which could affect how wallets, compliance teams, and counterparties manage exposure to USDT.

AI-generated background, compiled from web sources — not editorial content.

More coverage

Explore the topic

More on Tether

Comments