Tether, the issuer of the USDT stablecoin, said it worked with U.S. authorities to freeze and reissue about $1.6 million in digital assets tied to wallets associated with BuyCash, a Gaza-based financial network allegedly linked to terrorism financing.
The seizure forms part of a broader civil forfeiture case announced by the U.S. Department of Justice, which involves roughly $2 million in cryptocurrency assets connected to designated terrorist organizations. The wallets were identified on the secondary market during an investigation coordinated with law enforcement agencies. Following the alert, Tether froze the USDT in question and reissued the equivalent amount to aid lawful recovery.
Part of Broader Crackdown on Illicit Crypto Use
The case involving BuyCash is the latest in a series of enforcement actions involving Tether. Over the past year, the company has participated in multiple international investigations, including a seizure in Brazil earlier this month, where authorities blocked approximately $6.2 million linked to a cross-border money laundering operation. That case involved a criminal network using the Klever Wallet crypto platform.
Tether also supported the U.S. Department of Justice in a June enforcement action that resulted in the seizure of $225 million in USDT. In a separate incident in March, the firm helped the U.S. Secret Service freeze $23 million tied to the Russian-sanctioned crypto exchange Garantex and $9 million related to the Bybit hack.
Global Law Enforcement Cooperation
To date, Tether says it has assisted more than 275 law enforcement agencies across 59 jurisdictions and has frozen over $2.9 billion in USDT associated with illicit activities. The company has blocked more than 5,000 wallets, over 2,800 of which were in coordination with U.S. authorities.
Tether maintains that it adheres to the U.S. Office of Foreign Assets Control’s Specially Designated Nationals list and other national regulatory frameworks when taking such actions. Company CEO Paolo Ardoino said the ability to trace and freeze digital assets demonstrates the value of blockchain transparency in combating financial crime. Tether reiterated its commitment to continuing support for global law enforcement efforts and regulatory compliance in future cases.
