Tether, the issuer of the USDT stablecoin, has frozen over $544 million (approximately €460 million) worth of its currency at the request of Turkish law enforcement. The action targets wallets linked to an alleged massive illegal online betting and money-laundering syndicate operated by Veysel Sahin, a prominent figure in Turkey's underworld gambling industry.
The investigation, led by the Istanbul Chief Public Prosecutor’s Office, resulted in the seizure of these digital assets. Tether CEO Paolo Ardoino confirmed the company's compliance, stating, "Law enforcement came to us, they provided some information, we looked at the information and we acted in respect of the laws of the country." He emphasized that this process mirrors Tether's standard cooperation with global agencies like the U.S. Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI).
This case is part of a broader pattern of Tether assisting authorities worldwide. The company has now participated in over 1,800 investigations across 62 countries, resulting in the freezing of billions in USDT linked to criminal activity. Analytics firm Elliptic notes that Tether and Circle have collectively blacklisted around 5,700 wallets containing approximately $2.5 billion, with about three-quarters holding USDT at the time of freezing.
The Turkish operation occurs amidst increased regulatory pressure on illegal payment services and a global scrutiny of stablecoins. Reports indicate that stablecoins, particularly Tron-based USDT, interact significantly with high-risk blockchain addresses. In 2024, $649 billion in stablecoins—5.14% of total transaction volume—flowed through such addresses, with over 70% of that flow being USDT on Tron.
Despite this regulatory attention, USDT's dominance continues to grow. It achieved a record-high market capitalization of $187.3 billion in Q4 2025, adding $12.4 billion amidst market volatility. The number of monthly active USDT wallets reached 24.8 million, accounting for roughly 70% of all stablecoin accounts, with quarterly transaction volume hitting $4.4 trillion across 2.2 billion transactions.
