Tron accounted for nearly all recent USDT freeze activity, with over $506M restricted by Tether.
Tether has frozen more than $515 million in USDT tied to hundreds of blacklisted addresses across the Tron and Ethereum networks. New data from blockchain security firm BlockSec shows Tron accounted for nearly all recent enforcement activity. Rising scrutiny around illicit crypto flows has pushed stablecoin issuers deeper into global investigations. Recent actions linked to the DSJ Exchange and BG Wealth Sharing case added fresh attention to Tether’s role in freezing suspicious funds.
Tether Blacklisted Over 4,000 Addresses Across Tron and Ethereum in 2025
BlockSec’s tracker recorded 371 blacklisted addresses as of May 7, 2026. Among them, 329 addresses were on Tron, while 42 were on Ethereum. Freeze activity remained heavily concentrated on Tron, where roughly $506 million in USDT was restricted. Ethereum accounted for about $8.73 million.
Add multiple language and better mobile support to our USDT freeze monitor. Have fun!https://t.co/rOmNZPxoce pic.twitter.com/MmFBGJqTcS
— BlockSec (@BlockSecTeam) May 5, 2026
Data from BlockSec tracks freeze, unfreeze, and destroy events involving USDT on both chains through on-chain monitoring systems. Tron’s dominant role reflects its position as one of the largest networks for USDT circulation and transfers. Large-value wallet movements and exchange deposits frequently pass through the chain.
Earlier findings from BlockSec showed Tether blacklisted 4,163 unique addresses across Tron and Ethereum during 2025. Those restrictions locked around $1.26 billion in USDT. Tron and Ethereum remained the primary networks involved in stablecoin enforcement activity.
ZachXBT Reports $38.4M Frozen Following Cross-Chain Tracking Operation
Fresh details from on-chain investigator ZachXBT connected the latest freeze activity to the collapse of DSJ Exchange and BG Wealth Sharing. ZachXBT claimed the alleged Ponzi scheme collected more than $150 million from users before halting withdrawals.
7/ I performed a timing analysis to find withdrawals and located Solana/Tron deposits to Binance and found matching Tron withdrawals and provided details to relevant parties.
It resulted in $38.4M frozen by Tether on May 4 (yesterday) with another $3.1M+ frozen at various… pic.twitter.com/m9uuavhITb
— ZachXBT (@zachxbt) May 5, 2026
According to his findings, illicit actors moved more than $92 million across several blockchains between April 27 and May 3. ZachXBT said he coordinated with Tether, Binance Security, OKX, and U.S. law enforcement agencies during the investigation.
That effort reportedly led to $38.4 million in Tether funds being frozen on May 4, alongside additional restrictions imposed by exchanges and related services.
Tether Says USDT Restrictions Aim to Combat Crime and Sanctions Violations
The debate over centralized stablecoin controls continues to divide the crypto sector. Critics argue that wallet freezes conflict with crypto’s self-custody principles and limit users’ control over their assets. Supporters view the measures as necessary to block ransomware payments, sanction evasion, and large-scale financial crime.
Recent enforcement actions have stretched beyond fraud investigations. Tether previously froze $344 million in USDT linked to two Tron wallets tied to Iran’s Islamic Revolutionary Guard Corps during Operation Economic Fury. Separate reports later estimated Iranian-linked crypto seizures approached $500 million.
Tether said it currently cooperates with more than 340 law enforcement agencies across 65 countries. The company added that wallet restrictions apply when funds are tied to sanctions violations, criminal groups, or unlawful financial activity.