Tether froze approximately 39.27 million USDT across 10 addresses on the Tron network, targeting Xinbi Guarantee, an unregulated custody platform operating on Telegram. On-chain monitoring by MistTrack identified the wallets as connected to the service, which operates outside regulatory frameworks.
The freeze cuts off operational liquidity for the platform and makes funds inaccessible to users and operators. Tether has previously frozen assets tied to Huiwang Guarantee, another unregulated custodial service, signaling a consistent enforcement posture.
Tether's technical architecture allows it to blacklist addresses and freeze USDT held in those wallets—a centralized control mechanism built into the stablecoin protocol. These actions typically follow requests from U.S. law enforcement. The Financial Action Task Force has repeatedly flagged the role of stablecoins like USDT in illicit money flows, pushing issuers toward proactive freezes.
Between 2023 and 2025, Tether froze 3.3 billion dollars worth of USDT across 7,268 addresses spanning Ethereum, Tron, and other blockchains. By comparison, Circle froze approximately 109 million dollars in USDC over the same period—roughly 30 times less enforcement activity by volume.
On May 4, 2026, Tether blacklisted 38.4 million dollars in USDT across 19 Tron addresses connected to the collapsed DSJ Exchange and the BG Wealth Sharing investment scheme, a suspected Ponzi fraud network.
The concentration of freezes on Tron highlights its use by illicit actors for USDT transactions. Each freeze forces bad actors to rotate addresses and adapt operations, degrading the network's utility for illegal financial flows. MistTrack also recently identified approximately 28.7 million dollars in USDT frozen in another enforcement action, underscoring the ongoing, active monitoring of on-chain activity by Tether and blockchain analytics firms.
