Tether, issuer of the world's largest dollar stablecoin USDT, froze 5 wallets based on the Tron blockchain on Jan. 11 local time, blocking a total of $182 million worth of USDT, The Block reported on Jan. 12 local time.

Each wallet held balances of about $12 million to $50 million. The Block said the large-scale freeze is among the biggest on the Tron network in recent times.

The action follows Tether's voluntary wallet-freeze policy introduced in December 2023, aimed at complying with the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. Tether states in its terms of service that it can voluntarily freeze wallets when it is "reasonable and necessary."

Tether is cooperating with law enforcement agencies worldwide through such centralised control. The company said it has frozen more than $3 billion in USDT through cooperation with more than 310 agencies in 62 countries.

A 2025 Chainalysis report said stablecoins have emerged as a key medium for illicit cryptocurrency transactions. It said 84 percent of all illicit transactions in 2025 were conducted using stablecoins, with the total amount reaching $154 billion.