The tide is turning! The issuer of $USDT assists in freezing over $1 billion worldwide. Are crypto assets no longer beyond the law?

At the end of January, Turkish authorities announced the freezing of over $500 million in assets under the name of an individual named Veysel Sahin. He is accused of operating illegal online gambling platforms and money laundering. An Istanbul prosecutor revealed that a cryptocurrency company, whose name has not been disclosed, carried out the freeze at the government’s request.

This company is Tether, which issues the $USDT stablecoin with a market capitalization of $185 billion. Recently, the company has been actively assisting governments worldwide in combating various crimes involving cryptocurrencies, including money laundering, drug trafficking, and sanctions evasion.

Tether’s CEO Paolo Ardoino recently stated in an interview that their process is: law enforcement provides information, they verify it, and then take action according to the laws of the respective country. The cooperation with the U.S. Department of Justice and the FBI also follows this process. Tether has not further commented on the Turkish case.

The €460 million assets frozen are part of a large-scale law enforcement operation in Turkey, where the total assets frozen so far exceed one billion dollars. A few days after Sahin’s assets were frozen, another individual was under investigation for similar charges, with $500 million worth of crypto assets frozen under their name, though it is unclear whether this involves $USDT.

An anonymous Turkish official revealed that authorities tracked the flow of funds and analyzed crypto assets to uncover these “financial traces,” and indicated that similar actions will be taken against individuals involved in illegal gambling and payment systems in the future.

For Tether, this is just one of its increasing number of asset freezes. A report published by analytics firm Elliptic in January showed that by the end of 2025, Tether and its main competitor Circle had blacklisted approximately 5,700 wallet addresses involving about $2.5 billion in assets. Two years ago, this number was almost negligible.

At the time of freezing, three-quarters of these wallets held $USDT. Arda Akartuna, head of crypto threat intelligence for Elliptic in the Asia-Pacific region, pointed out that as the legitimate use of cryptocurrencies and global payment integration accelerate, their illegal use is also increasing, prompting stablecoin issuers to intervene more actively.

Tether often promotes its efforts to combat crime, including in communication materials aimed at attracting potential investors. The company is seeking to raise funds at a valuation of up to $500 billion. According to its official website, Tether has assisted law enforcement agencies in 62 countries with over 1,800 cases, freezing $USDT worth $3.4 billion related to suspected illegal activities.

Nathan McCauley, co-founder and CEO of Anchorage Digital Bank, a Tether partner, commented that Tether’s cooperation attitude is extremely proactive, and among stablecoin issuers, the company has a “recognized best reputation” among law enforcement agencies. Anchorage is the issuer of Tether’s compliant USD stablecoin $USAT, which was launched in late January, marking Tether’s return to the U.S. market.

This marks a significant shift from the tense relationship Tether had with U.S. regulators a few years ago. After conflicts with regulators in 2018, Tether largely exited the U.S. market and settled in 2021 by paying $41 million over allegations of misrepresenting reserves.

However, the second term of Trump’s administration was more friendly toward the crypto industry. Last year, Ardoino and several other executives attended the ceremony where President Trump signed the stablecoin regulation bill. Despite this, Tether’s $USDT continues to face regulatory scrutiny due to its widespread use by criminals.

In early January, the U.S. Eastern District of Virginia charged a Venezuelan citizen with laundering one billion dollars using $USDT. Another recent report by Elliptic showed that the Central Bank of Iran had purchased over $500 million worth of $USDT to alleviate currency crises and evade U.S. sanctions.

Returning to the Turkish case, the fugitive Sahin is accused of leading an organization that launders money for illegal online gambling platforms. According to local media, he was sentenced to ten years in prison in 2017, released in 2023, and a month later sentenced to twenty-one years for new charges. His whereabouts are currently unknown, but Turkish state news agency reports that authorities are advancing legal procedures to extradite him back to Turkey.

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