Tether Freezes $1.6M in USDT Linked to Terror Ties as Bitcoin Holds $118K Support

Key Insights:

• Tether froze $1.6M in USDT tied to Gaza-based financial network BuyCash.
• Over $2.9B in illicit funds have been frozen by Tether to date.
• Bitcoin remains stable near $118,700 amid growing regulatory clarity in crypto markets.

Tether has frozen $1.6 million in USDT linked to a Gaza-based group implicated in terror financing. The wallets, associated with BuyCash, were flagged by U.S. authorities in a civil forfeiture case. Tether promptly reissued the funds to support lawful recovery.

The freeze is part of broader enforcement by the Department of Justice against assets aiding designated terror organizations. Tether acted upon intelligence coordinated with law enforcement agencies and conducted the freeze in the secondary market. The company emphasized its cooperation with U.S. agencies in tracking illicit financial activity.

Over the past year, Tether has aided global law enforcement in freezing millions in digital assets. The firm helped Brazilian authorities block $6.2 million in a laundering scheme involving Klever Wallet. In June, the DOJ acknowledged Tether for aiding in freezing $225 million from illicit operations.

USDT Transparency Strengthens Crypto’s Law Enforcement Role

Tether reports that it has blocked more than 5,000 wallets, with 2,800 done in coordination with U.S. agencies. The firm says it froze $23 million tied to Russia-sanctioned Garantex and $9 million from the Bybit hack. To date, over $2.9 billion in USDT linked to crime has been frozen.

The stablecoin issuer follows freezing policies aligned with OFAC sanctions and global regulatory standards. Its compliance record includes assisting 275 agencies across 59 jurisdictions. Tether stresses that public blockchain transparency enhances traceability, unlike opaque traditional finance systems.

This latest action underscores the dual-use nature of crypto assets and the need for effective oversight. Tether’s ability to freeze funds quickly has positioned it as a crucial intermediary between decentralized networks and enforcement. However, growing operations also highlight the need for balanced regulation that preserves innovation.

Bitcoin, meanwhile, traded at $118,780 with 0.23% daily gains and a 24-hour volume of $72.86 billion. Market cap reached $2.36 trillion as circulating supply touched 19.89 million BTC. Based on the chart pattern, the price remains on track to retest higher resistance near $119,500 if momentum holds.