Tether has decided to freeze 112 wallets holding approximately $700 million in USDT on the Ethereum and Tron blockchains.
Scale of Wallet Freezes
Tether's actions have resulted in significant amounts of USDT being frozen. Analysts note that this comes amid increasing regulatory scrutiny on stablecoins in the United States.
Connection to Iran and Role of Tron Network
According to analyst Cryptadamist, the majority of the frozen wallets are hosted on the Tron network, and many are reportedly tied to Iranian crypto users. Users have been trained to circumvent international sanctions using services from Nobitex, one of Iran's largest exchanges.
Impact on Crypto Infrastructure and Regulation
The freeze of wallets could impact overall liquidity in the cryptocurrency space, particularly affecting Bitcoin mining in Iran, which relies on USDT availability. Additionally, Tron founder Justin Sun's connections with political circles in the U.S. have come under scrutiny following these events.
Tether's freeze of $700 million in USDT signals a stronger regulatory enforcement stance, particularly concerning flows linked to Iran as investigations increase.
