Tether has frozen $213 million in USDT across 48 accounts tied to iGaming founder Gurhan Kiziloz, marking one of the largest single-target stablecoin freezes on record. The action was carried out in coordination with Brazilian authorities as part of a civil tax dispute concerning alleged unlicensed gambling operations and cryptocurrency token sales that took place between 2021 and 2024.
The freeze was executed after extensive on-chain analysis and cross-border cooperation between Tether Operations Ltd. and Brazilian tax regulators. Each of the 48 wallets had to be individually identified and mapped to the disputed tax window before the freeze could be implemented. No criminal charges have been filed; the matter is proceeding through Brazil’s civil courts.
Kiziloz’s legal team is expected to challenge the retrospective application of Brazil’s iGaming and digital asset regulations, as the country’s formal licensing regime for gambling and securities framework for token issuance were only clarified in 2024. Authorities are applying these rules to conduct that pre-dated their existence, which could set a significant industry precedent.
The case highlights Tether’s growing role as an enforcement tool in digital finance. The company has now frozen over $5.1 billion in assets since its inception, including more than $515 million in the last 30 days alone. With USDT’s circulating supply approaching $190 billion, Tether’s compliance capabilities can remove liquidity within minutes, contrasting sharply with traditional financial enforcement timelines.
