Tether Freezes $1.6 Million in USDT Tied to Gaza Terror Financing

Tether froze $1.6 million in USDT connected to wallets linked to Buy Cash Money and Money Transfer Company, a Gaza-based network designated for terrorism financing. 

The U.S. Department of Justice announced the civil forfeiture case on July 22, 2025, targeting approximately $2 million in digital assets used to support designated terrorist organizations.

Law enforcement identified the suspect wallets and worked with Tether to freeze the funds. The company followed its standard compliance procedures to assist in the investigation. 

Paolo Ardoino, CEO of Tether, stated that the company’s strength lies in blockchain technology’s transparency and the ability to act when abuse is detected. He noted that unlike traditional financial systems where illicit flows often go unseen, USDT remains traceable, transparent, and accountable.

This action follows a series of similar enforcement efforts. In June 2025, Tether helped the DOJ seize $225 million in USDT linked to investment fraud. Earlier in March, the company froze $23 million connected to the sanctioned Russian exchange Garantex and blocked another $9 million tied to the Bybit hack.

As of July 24, 2025, Tether has blocked over 5,000 wallets and frozen over $2.9 billion in USDT across 59 jurisdictions. More than 2,800 wallets were blocked in direct coordination with U.S. agencies. The company has assisted more than 275 law enforcement bodies worldwide.

Tether operates under strict compliance policies that require freezing wallets linked to sanctioned individuals or criminal activity. The company coordinates with U.S. Treasury sanctions lists and international regulatory bodies to combat illicit cryptocurrency use.