Tether has confirmed that approximately $544 million in USDT was frozen following a request from Turkish authorities in connection with an ongoing financial investigation. The action highlights how stablecoin issuers are increasingly involved in cross-border regulatory and compliance processes as digital assets become more widely used in global payments.
Authorities in Istanbul stated that the assets are associated with an investigation into unlicensed online betting activities and related financial flows. The case involves Veysel Sahin, who is accused by prosecutors of operating platforms that did not meet local regulatory requirements. Officials initially did not identify the crypto service provider involved, but Tether Holdings SA later confirmed its participation through comments shared with Bloomberg.
Tether CEO Paolo Ardoino said the company reviewed information provided by law enforcement before taking action and emphasized that such cooperation is guided by applicable laws and legal frameworks. The freeze is part of a broader effort by Turkish institutions to address informal betting markets and unregulated payment channels, through which authorities have reported seizing more than $1 billion in assets.
Collaboration Between Stablecoin Issuers and Public Institutions
Tether reports that it has supported more than 1,800 investigations across 62 countries, leading to the freezing of approximately $3.4 billion in USDT linked to suspected policy or legal violations. The company says it regularly engages with public institutions, financial regulators, and investigative bodies when formal requests are made and legal thresholds are met.
According to blockchain analytics firm Elliptic, stablecoin issuers—primarily Tether and Circle—had restricted around 5,700 blockchain addresses holding an estimated $2.5 billion by late 2025. Roughly three-quarters of those addresses contained USDT, reflecting the token’s widespread adoption across different regions and use cases.
At the same time, researchers and policymakers continue to examine how stablecoins are used, particularly in high-risk environments. Recent legal cases and academic studies have drawn attention to instances where digital assets were used in ways that raise compliance or sanctions-related concerns, contributing to ongoing discussions around transparency, monitoring, and consumer protection.
Stablecoin Adoption, Market Trends, and Risk Awareness
Research from Bitrace indicates that around $649 billion in stablecoins—about 5.14% of total stablecoin transaction volume—moved through blockchain addresses classified as higher risk in 2024. Tron-based USDT represented more than 70% of this activity, a trend often attributed to its accessibility, low transaction costs, and strong presence in emerging markets.
Despite increased scrutiny, USDT continued to grow. In the fourth quarter of 2025, Tether’s market capitalization reached a record $187.3 billion, expanding by $12.4 billion even as broader crypto markets faced volatility following October’s liquidation cascade. During the same period, other stablecoins showed slower growth, with USDC remaining largely unchanged and USDe experiencing a notable decline.
User engagement also reached new highs. Monthly active USDT wallets rose to 24.8 million, representing nearly 70% of all stablecoin-holding addresses. Quarterly transfer volume increased to $4.4 trillion across 2.2 billion transactions, underscoring the role of stablecoins as widely used tools for digital payments, liquidity, and value transfer worldwide.
