ether (USDT) froze over $182 million across five wallets on the Tron blockchain on January 11, according to on-chain data and reporting from Whale Alert. Individual wallets contained balances ranging from roughly $12 million to $50 million. The coordinated action ranks among the larger single-day wallet restrictions disclosed on Tron in recent months.
❄ ❄ An address with a balance of 44,990,109 #USDT (44,960,404 USD) has just been frozen!https://t.co/d4JuMUFwbX
— Whale Alert (@whale_alert) January 10, 2026
Unlike other incidents where funds move or are withdrawn, these tokens were frozen at the contract level. They remain visible on the blockchain but cannot be used.
“Tether has frozen assets in connection with an ongoing investigation, following a formal request from law enforcement authorities,” a Tether spokesperson said. “The relevant agency has been working on this case for several months. Tether routinely works with law enforcement agencies globally and has a long standing practice of supporting lawful investigations by freezing addresses linked to illicit activity or sanctions violations in response to valid requests.”
Tron as a key settlement layer
The Tron blockchain hosts over $82 billion of circulating USDT supply, making it a primary network for stablecoin transfers. Tron’s low fees and fast transaction speeds have encouraged adoption in emerging markets and among high-frequency traders. However, its prominence also makes USDT on Tron a focal point for monitoring illicit activity.
Paul Faecks, founder of Plasma, described the Jan. 11 freezes as “one of the largest blacklists” he could remember.
Tether just froze $182m USDT on Tron across 5 wallets, one of the largest blacklist I can remember.
— Googly 👀 (@0xG00gly) January 11, 2026
Expecting another DOJ press release thanking Tether soon, like for previous large cases.
To put in context, this is higher than all USDC frozen to date.https://t.co/7MR5K0oKfK pic.twitter.com/kgsiqbYaYD
Data compiled by AMLBot shows Tether has frozen over $3 billion worth of assets across more than 7,000 addresses since 2023. This figure far exceeds similar actions by competitors. For example, Circle, the issuer of USDC, froze only $109 million over the same period.
Centralization versus decentralization
Tether maintains administrative control over USDT through special keys embedded in smart contracts. These keys allow the company to block or freeze tokens at the issuer level. This structure ensures compliance with anti-money laundering regulations and enables Tether to respond quickly to law enforcement requests when funds are suspected of being linked to criminal activity.
The episode reignites debate over stablecoin centralization. Unlike decentralized cryptocurrencies such as Bitcoin, which cannot be blocked or frozen by a central entity, USDT can be restricted. This difference affects users who rely on stablecoins for privacy or unrestricted fund movement.
Stablecoins in sanctioned regions
Recent turmoil in Venezuela and Iran has highlighted the dual nature of stablecoins. Residents use USDT to hedge against hyperinflation and systemic risk, while sanctioned entities may attempt to exploit stablecoins to evade restrictions.
Iran has faced widespread protests over the past two weeks amid economic deterioration and the Iranian rial dropping to record lows against the U.S. dollar. Authorities reportedly cut domestic internet access during the unrest. Tron-based USDT is widely used by Iranian citizens to preserve value. TRM Labs reported that Iran’s Islamic Revolutionary Guard Corps allegedly moved over $1 billion in stablecoins through front companies operating abroad.
“In practice, they operate as a single enterprise embedded within a broader Iranian sanctions evasion ecosystem,” TRM Labs said.
Venezuela also relies heavily on USDT amid currency collapse. Mauricio Di Bartolomeo, a 71-year-old Venezuelan crypto entrepreneur, told The Wall Street Journal,
“It’s how you pay your landscaper and how you pay for your haircut. You can use tether basically for anything.”
Petroleos de Venezuela, the state-run oil company, reportedly accepts 80% of its oil revenue in USDT and frequently uses the asset for incoming and outgoing payments. Tether cooperates with U.S. authorities to freeze wallets tied to these activities.
Enforcement and market impact
The January 11 freeze represents the ongoing tension between regulatory compliance and stablecoin adoption. Tether’s centralization allows swift enforcement, but it also underscores structural differences between fiat-backed tokens and decentralized cryptocurrencies. Chainalysis data indicates stablecoins accounted for 84% of all illicit cryptocurrency transaction volume in 2025.
With large-scale freezes, Tether demonstrates its role as a key compliance intermediary in the stablecoin ecosystem. The company has worked with over 310 agencies across 62 jurisdictions, assisting in investigations and sanction enforcement.
As stablecoins gain adoption in politically unstable regions, the Tether-Tron case highlights the ongoing balance between technological innovation, legal compliance, and the principles of decentralized finance.
Matvii Diadkov
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
