Tether Freezes $544M in Crypto Linked to Illegal Betting in Turkey

Tether has frozen $544 million in cryptocurrency at the request of Turkish authorities, blocking funds tied to an illegal online betting and money-laundering network. The move is part of a broader effort to crack down on underground gambling operations in the country.

Tether Works With Turkish Authorities to Block Funds

Authorities in Istanbul announced the seizure of about €460 million, roughly $544 million, in assets belonging to Veysel Sahin, accused of running unlawful betting platforms and laundering money. 

Tether Holdings SA, the issuer of the $185 billion USDt stablecoin, confirmed it froze the assets after receiving official requests. CEO Paolo Ardoino said the company acted in compliance with local laws, adding that Tether has worked with law enforcement agencies worldwide in similar cases.

Tether’s cooperation demonstrates its growing role in monitoring and preventing illicit activity in the cryptocurrency space. 

The company said it has helped in more than 1,800 investigations across 62 countries, freezing $3.4 billion in USDt connected to suspected criminal activity. Turkey has already seized more than $1 billion in related probes targeting illegal gambling and payment networks.

In separate news, Tether recently made a strategic investment in t-0 Network. This feature significantly minimizes the volatility risks typically associated with cryptocurrencies. 

Stablecoin Blacklists and Oversight

Analytics firm Elliptic reports that Tether and Circle have blacklisted approximately 5,700 wallets, containing around $2.5 billion, by late 2025. Most of these wallets held USDt when frozen. 

Despite this oversight, USDt continues to be linked to major criminal investigations. Recently, U.S. prosecutors charged a Venezuelan national with laundering $1 billion, largely using USDt, while blockchain researchers have traced large transfers to sanctions-evasion activity.

This shows that stablecoin oversight is becoming a key part of law enforcement efforts to curb illicit finance globally. Forensic tracing of transactions has made it possible for authorities to follow laundered funds from suspects to exchanges, allowing for quicker seizures and prosecutions.

USDt Market Growth and Usage

Tether’s USDt reached a record market capitalization of $187.3 billion in late 2025, up $12.4 billion despite the broader crypto market downturn. The stablecoin dominates usage, with 24.8 million monthly active wallets, about 70% of all stablecoin addresses. Transfer volumes also hit $4.4 trillion across 2.2 billion transactions, setting new records.

As authorities continue investigations, Tether’s USDt remains a focus of scrutiny. The company’s actions in Turkey highlight the growing intersection of cryptocurrency and law enforcement. This shows that even stablecoins can be monitored and restricted when linked to illegal activity.