Bloomberg has reported that Tether, the issuer of the world's largest stablecoin USDT, recently complied with a request from Turkish authorities to freeze a substantial amount of crypto assets linked to illegal gambling and money laundering. The total value of crypto assets locked in related cases has now exceeded $1 billion in Turkey.
Tether Steps In: Turkey Seizes Over $500M in Crypto
On January 30, Turkish law enforcement announced the seizure of more than $500 million in crypto assets from a suspect named Veysel Sahin, accused of operating underground gambling websites and laundering money through crypto. The Chief Prosecutor of Istanbul stated that an undisclosed crypto company was commissioned to execute the freeze. Bloomberg's investigation identified the company as Tether, whose USDT market cap has ballooned to $185 billion.
Tether CEO Paolo Ardoino told Bloomberg: "Law enforcement agencies reach out to us, provide the information, we verify the information and then we take action according to the laws of the country. This is the same process we follow with the Department of Justice, the FBI and other agencies." Tether declined further comment. Sahin remains at large, but Turkey's Anadolu Agency reported on January 30 that authorities are pushing for his extradition.
Chain of Actions: Cumulative Freezes Exceed $1B
The seized assets, valued at 460 million euros (approx. $544 million), are just one part of a broader Turkish crackdown. As of press time, Turkish authorities have frozen over $1 billion in crypto in related cases. Turkey's NTV reported that just days after Sahin's freeze, another suspect implicated in money laundering and illegal gambling had about $500 million in crypto seized. It remains unclear if Tether assisted in the second freeze. An anonymous Turkish official said investigators traced financial footprints by following fund flows and analyzing crypto wallet connections, and warned that more actions targeting illegal gambling and payment systems are coming.
From Questioned to Essential: The Role Shift of Stablecoin Issuers
Bloomberg noted that Tether is transitioning from a once-scrutinized entity to a key tool for governments fighting crypto crime. According to blockchain analytics firm Elliptic's January data, as of end-2025, Tether and rival Circle Internet Group Inc. have blacklisted nearly 5,700 wallets, involving about $2.5 billion. Roughly three-quarters of the frozen wallets held USDT.
Arda Akartuna, Elliptic's APAC crypto threats intelligence lead, said: "As legitimate crypto uses and global payment integration accelerate, illegal usage also rises, prompting stablecoin issuers to intervene more aggressively."
Bloomberg also reported that Tether frequently highlights its law enforcement cooperation during investor presentations — the company is reportedly raising funds at a $500 billion valuation. Tether's website states it has assisted in over 1,800 cases across 62 countries, freezing $3.4 billion in USDT linked to illicit activity.
Return to U.S. Market: A Reversal in Regulatory Relations
Nathan McCauley, co-founder and CEO of Anchorage Digital Bank (Tether's partner), said: "They are exceptionally proactive — among stablecoin issuers, they have the best reputation in law enforcement." Anchorage is the issuance partner for Tether's compliant U.S. dollar stablecoin USAT, which launched in late January and is seen as a milestone in Tether's return to the U.S. market. This starkly contrasts with 2018 when Tether exited the U.S. after clashing with regulators, and 2021 when it settled for $41 million over misrepresentation of reserves. With Trump back in the White House, the administration's stance on crypto has shifted, and Ardoino attended the signing of a stablecoin regulatory bill last year.
USDT Still a Tool for Criminals, Regulatory Pressure Persists
Despite Tether's compliance push, USDT misuse remains a headache. On January 9, a Venezuelan national was indicted in the Eastern District of Virginia for allegedly laundering $1 billion via USDT. Elliptic also found that Iran's central bank spent over $500 million buying USDT to evade sanctions and stabilize its currency. The key figure in the Turkey operation, Veysel Sahin, was reportedly the leader of a network laundering money for illegal gambling sites. He was sentenced to 10 years in 2017, released in 2023, but re-sentenced to 21 years within a month. His current whereabouts are unknown, but Turkey is seeking his extradition.