The freeze targeted two separate wallet addresses. Tether said the funds were linked to unlawful conduct but gave no further detail about what the accounts were suspected of doing or who controlled them.
The company coordinates freezes when it finds credible ties to sanctioned entities, criminal networks, or other illegal activity, according to its published policy.
Tether CEO Paolo Ardoino defended the action in a statement released alongside the announcement. “When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively,” he said. The company did not respond to further requests for comment.
The reaction reflects a tension that has existed since centralized stablecoins became widely used — the tokens may sit on a blockchain, but the company behind them holds a master switch.
3/ On April 1, 2026, Drift Protocol was exploited for $280M.
The exploiter used CCTP to bridge 232M+ USDC from Solana to Ethereum across 100+ transactions over six consecutive hours. 10+ additional DeFi protocols across the Solana ecosystem were indirectly impacted.
A Debate Rekindled By A $280 Million HackThe criticism drew wide attention across the crypto community and intensified calls for clearer standards around when and how stablecoin issuers should intervene.
Featured image from MetaAI, chart from TradingView
