USDT’s Centralized Power: Tether Freezes $182M in Major Law Enforcement Action

In a landmark demonstration of centralized control, Tether has frozen $182 million worth of its USDT stablecoin across five Tron-based wallets following a coordinated law enforcement request. This action, one of the largest single-day freezes in USDT history, highlights Tether's ability to deploy administrative keys to halt transactions linked to illicit activities such as scams, hacking, and sanctions violations. The move brings Tether's total frozen assets to over $3 billion, underscoring the significant role centralized stablecoin issuers play in regulatory compliance and ecosystem security. While this showcases a commitment to combating financial crime, it also reignites debates about the decentralized ethos of cryptocurrencies, as Tether's power to freeze funds stands in stark contrast to the permissionless nature of assets like Bitcoin. For the broader crypto market, such actions may bolster institutional confidence by demonstrating that major players can cooperate with global authorities, potentially paving the way for greater mainstream adoption. However, it also serves as a reminder that stablecoins like USDT operate under a different set of rules than truly decentralized assets, a factor investors must weigh when considering long-term holdings in an increasingly regulated digital finance landscape.

Tether Freezes $182M in USDT on Tron in Major Law-Enforcement Crackdown

Tether has frozen $182 million worth of USDT across five Tron-based wallets in a coordinated law-enforcement action. The MOVE underscores Tether's centralized control over its stablecoin, deploying administrative keys to halt transactions linked to scams, hacking, and sanctions violations.

This marks one of the largest single-day freezes in USDT history, bringing Tether's total frozen assets to over $3 billion since 2023. The affected wallets held between $12 million and $50 million each, now rendered unusable while remaining visible on-chain.

The freeze highlights Tether's dual role as both liquidity provider and compliance enforcer. While maintaining market stability, the company continues to monitor and block illicit transactions—reinforcing stablecoins' growing dominance in crypto markets.

Trump-Backed Startup Launches WLFI-Powered Lending Platform

World Liberty Financial, a Miami-based firm backed by Donald Trump's sons, has unveiled World Liberty Markets—a new onchain lending and borrowing platform. The service supports digital assets including USD1, WLFI, Ethereum, cbBTC, USDC, and USDT, operating exclusively on the ethereum network for now.

The platform eliminates intermediaries, enabling peer-to-peer crypto loans and interest-earning opportunities. WLFI, the native governance token, gains utility as collateral, while USD1 expands its decentralized ecosystem footprint. Dolomite powers the infrastructure.

Future plans include adding real-world asset collateral types and multi-chain expansion, though specifics remain undisclosed. This move signals growing institutional interest in blockchain-based financial solutions.