Tether has frozen five Ethereum wallet addresses that collectively held approximately 24.35 million USDT, according to blockchain security firm SlowMist. The freeze was executed roughly eight hours before SlowMist publicized the action, blocking token transfers from those addresses.
MistTrack, a tracking platform affiliated with SlowMist, examined one of the affected addresses and found prior interactions with wallets connected to phishing attacks and investment fraud. The address was also linked to pig-butchering schemes, a type of fraud in which scammers build victim trust before directing them into fake investments. However, MistTrack did not confirm that all five addresses were used for illegal activity.
The move underscores the control centralized stablecoin issuers can exert over on-chain funds. Tether has not publicly detailed which official request or internal security assessment prompted the action. The freeze may restrict illicit fund flows, but it also renews questions about transparency, due process, and the finality of stablecoin transfers.
