Tether froze $182M in stablecoins, locked in five TRON-based wallets. The wallet data links it to illicit transactions. Tether froze $182M on the TRON network after tracking down illicit transactions. The funds are linked to some of the usual scams using stablecoins, mostly linked to personal wallet attacks or confidence scams. Tether froze out five wallets in a single transaction, adding them to their banned list. Tether freezes $3.3B in stablecoins Tether has been committed to protecting user funds and has tracked down and frozen $3.3B in stablecoins between 2023 and 2025. The stablecoin issuer has blacklisted 7,268 addresses, of which 4,505 are on the Ethereum network, with around $1.5B in funds. Tether usually re-mints the stablecoins after investigations are completed. In the past few years, attempts to claw back funds from scams have been accelerating, though still making up a small part of total losses. Stablecoins still make up to 84% of illicit transaction volumes. Some of the wallet freezes are reportedly linked to a lack of KYC, or for activities linked to Iranian nationals and Iranian-based financial operations. While freezes raise the issue of censorship, this is the only recourse against losses and scams. Tether and TRON are cooperating, though there is no automatic agreement on freezing funds from exchanges or DeFi protocols. Tether still uses the T2 Financial Crime Unit, created in partnership with TRON. So far, the unit has tracked down $300M, after launching in September 2024. Despite the effort, salvage operations for stablecoins are done sporadically, only when funds can be tracked down in time. TRON-based USDT rises to over 82B tokens The supply of USDT on the TRON network rose to over 82B tokens, while the Ethereum-based supply is at over 102B tokens. TRON-based USDT activity is cyclical, coinciding with Asian market settlement hours. The TRC-20 version of the token has been linked to a wider ecosystem of scams. | Source: Dune Analytics . TRON-based USDT transactions show predictable daily transfers, coinciding with trading hours and settlement on the Asian markets. Most of the transfers come from wallets with under 100 USDT. The network activity is still scrutinized for non-organic traffic. Despite this, TRON-based USDT remains one of the main assets for general P2P payments. The average transaction on the network is most commonly between $100 and $1,000, while Ethereum-based transfers are usually under $100. TRON-based USDT is also less widely represented on centralized exchanges , but more widely used for payments as an alternative fintech tool. USDT on TRON was also one of the main tokens used in decentralized marketplaces, which also serve as a hub for scams and laundering. Only a fraction of the funds can be clawed back, as most are distributed to smaller wallets and are difficult to link to specific entities or exploits. TRON-based tokens are also often frozen in newly created scam apps or requested as payment by Telegram sellers. P2P swaps and vendor services are also a high-risk venue for TRON-based USDT. The smartest crypto minds already read our newsletter. Want in? Join them .
