Tether Freezes Over $500 Million in USDT Linked to Turkey Gambling Syndicate

Tether, the issuer of the world’s largest stablecoin USDT, has frozen more than $500 million in digital assets connected to a major illegal gambling and money-laundering operation in Turkey. The action is being described as one of the largest single-asset freezes ever carried out in the cryptocurrency industry, underscoring the growing role of stablecoin issuers in global law enforcement efforts.

According to reports, the frozen funds are linked to assets controlled by Veysel Sahin, whom Turkish prosecutors accuse of running an extensive illegal betting network. The operation allegedly funneled large sums of money through digital assets to evade traditional financial oversight. Tether CEO Paolo Ardoino confirmed the company’s involvement, stating that the firm acted after receiving verified information from law enforcement authorities and complied with applicable legal requirements. He emphasized that Tether routinely works with agencies such as the U.S. Department of Justice and the FBI when requested.

This enforcement move highlights a notable shift in Tether’s public positioning. Once criticized for limited transparency and regulatory friction, the British Virgin Islands–incorporated company has increasingly portrayed itself as a cooperative partner to global regulators and police agencies. Earlier this year, Tether froze more than $180 million in USDT tied to criminal investigations, bringing the total value of frozen assets to over $3 billion since the company’s inception.

With a circulating supply exceeding $187 billion, USDT remains the primary liquidity backbone of the global cryptocurrency market. The stablecoin is used by hundreds of millions of users worldwide to transfer funds quickly between exchanges without relying on traditional banking systems. However, the scale and frequency of recent freezes have challenged the long-held perception of cryptocurrencies as fully censorship-resistant financial tools.

Beyond enforcement actions, Tether has been actively diversifying its reserves and expanding its business strategy. Over the past year, the company announced a $150 million investment in Gold.com and a $100 million strategic stake in Anchorage Digital, the first federally regulated digital asset bank in the United States. Following a reported $10 billion profit in 2025, Tether is also investing in sectors such as Bitcoin mining, decentralized communications, artificial intelligence, and sports, signaling its ambition to grow far beyond stablecoins while maintaining a central role in the crypto economy.