Since August 2024, the T3 Financial Crimes Unit, in collaboration with Tether, Tron, and TRM Labs, has frozen $126 million in USDT. Nearly half of these frozen assets, totaling $56 million, are associated with money laundering. Meanwhile, investment scams account for another $36 million, highlighting the ongoing vulnerabilities within the crypto sector.

The freeze on assets has rekindled debates over how to balance crime prevention against the principles of decentralization and privacy. Proponents of decentralization argue that such measures could lead to financial censorship. Furthermore, Tether’s history includes freezing $360 million in 2022 and an additional $835 million by the end of 2023.