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USDT, issued by Tether, is the largest stablecoin by market value. It is pegged to the U.S. dollar at a 1:1 ratio and is widely used on cryptocurrency trading platforms and decentralized finance (DeFi) protocols. “Freezing” USDT means that Tether uses its smart contract feature to prevent specific wallet addresses from transferring their tokens, effectively freezing the funds.
Tether announced that it supports the freezing of more than $344 million worth of USDT, in coordination with the Office of Foreign Assets Control (OFAC) and U.S. law enforcement authorities. The frozen funds are alleged to be linked to terrorist activities, noting that the identities of the individuals or organizations associated with these wallets have not been publicly disclosed.