Tether Freezes Over $500M in USDT as Turkey Intensifies Crackdown on Illegal Online Betting Networks
- Tether froze over $500 million USDT for Turkey as stablecoin enforcement expands across betting networks globally.
- Turkey seized over $1 billion in related cases showing deeper pressure on crypto payment routes today.
- USDT activity hit records despite scrutiny as billions flowed through wallets flagged for financial crime risks.
Tether Holdings froze more than half a billion dollars in USDT at the request of Turkish authorities. The move was against the money associated with purported illegal online gambling and laundering systems.
The Istanbul prosecutors declared that they seized assets worth approximately 460 million related to the same investigation. Authorities linked the funds to platforms accused of processing unlawful wagers. The freeze marked one of the largest single enforcement actions involving a stablecoin issuer.
Turkey Broadens Asset Seizures Across Payment Networks
Turkey has expanded a wider campaign against underground gambling and shadow payment channels. Investigators accused the network of routing proceeds through digital assets and cross border structures. Authorities have already seized more than $1 billion through connected investigations. Moreover, officials focused on dismantling infrastructure supporting unlicensed betting activity. The latest action signals deeper scrutiny of crypto rails used inside illicit payment systems. Last year, Turkey’s Capital Markets Board introduced new regulations for CASPs, ensuring better transparency and compliance in the crypto market.
Stablecoin Blacklisting Shows Scale of Global Cooperation
Analytics company Elliptic announced massive blacklisting of wallets by stablecoin issuers. Towards the end of 2025, companies blocked approximately 5,700 wallets with around $2.5 billion. Around three quarters of those addresses held USDT when enforcement occurred. Tether reports assistance across more than 1,800 cases in 62 countries. These efforts resulted in $3.4 billion in frozen USDT tied to suspected criminal activity.
Scrutiny Persists as USDT Usage and Volumes Climb
Despite cooperation, USDT continues to face regulatory attention worldwide. Prosecutors in the United States recently charged a suspect accused of laundering $1 billion using stablecoins. Blockchain researchers also linked large USDT flows to sanctions evasion patterns. Compliance firm Bitrace found that 5.14% of stablecoin volume moved through high risk addresses in 2024. Tron based USDT represented more than 70% of that activity.
Meanwhile, USDT market capitalization reached $187.3 billion in late 2025. Growth continued despite a broader crypto downturn during October liquidations. Network usage also surged, with monthly active wallets reaching 24.8 million. Quarterly transfer volume climbed to $4.4 trillion across 2.2 billion transactions. Additionally, Tether USDT gained approval across multiple ADGM blockchains boosting regulated digital finance. Rival stablecoins showed weaker momentum, as Circle saw USDC remain largely flat.
