Tether · CryptoSlate
Tether freezes 134 wallets as stablecoins now sit inside the sanctions machine
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ISIS-K, the Islamic State affiliate active across Afghanistan, Pakistan, and parts of Central Asia, had USDT balances frozen on 131 TRON addresses after an OFAC sanctions update, creating an enforcement test for stablecoins.
Key facts
- Chainalysis said the 131 TRON wallets controlled by ISIS-K had received more than $1.4 million since 2023 and sent more than $880,000
- In May, it said the T3 Financial Crime Unit involving Tether, TRON, and TRM Labs had frozen more than $450 million tied to illicit crypto flows
- ISIS-K, the Islamic State affiliate active across Afghanistan, Pakistan, and parts of Central Asia, had USDT balances frozen on 131 TRON addresses after an OFAC sanctions update, creating
- The July 1 action updated the ISIL Khorasan designation with digital-currency identifiers
Summary
01 OFAC’s July 1 ISIS-K update led Tether to freeze USDT balances on 131 TRON addresses. 02 The case shows stablecoins now sit inside sanctions enforcement, where issuers, exchanges, and analytics can stop token balances in motion. 03 The unresolved issue is how far this issuer-driven model reaches, especially when funds move to assets or routes without freeze controls. The July 1 action updated the ISIL Khorasan designation with digital-currency identifiers.