Tether, the issuer of the USDT stablecoin, has frozen more than $1.5 billion in tokens connected to the October 29, 2026, attack on Binance. The company reported that it completed the action within 30 minutes of the incident, preventing the attackers from transferring, exchanging, or laundering the affected funds.
The US Federal Bureau of Investigation (FBI) has identified North Korea as responsible for the attack. The rapid intervention highlights the role of stablecoin issuers in responding to cryptocurrency theft and coordinating with law enforcement agencies to restrict access to suspicious digital assets.
Tether’s intervention within 30 minutes prevented the attackers from moving more than $1.5 billion in USDT, demonstrating how centralized stablecoin controls can help contain the movement of stolen cryptocurrency.
Tether Highlights Cooperation With Law Enforcement
Tether’s freezing mechanism allows the company to restrict transactions associated with specific wallet addresses. This capability can prevent funds from being transferred or exchanged once an address has been identified and targeted for enforcement action.
The effectiveness of such interventions depends largely on how quickly the issuer receives information and coordinates with relevant authorities. In the Binance-related incident, the company indicated that its rapid response prevented the attackers from accessing alternative channels to move the funds.
Tether CEO Paolo Ardoino said the incident demonstrated that USDT was not a suitable instrument for criminals seeking to conceal or move illicit funds. Bo Hines, CEO of Tether USA₮, described the intervention as a contribution to security efforts in the United States and internationally.
US authorities have repeatedly warned that cryptocurrency theft provides a significant source of revenue for North Korea, including funding for activities associated with its nuclear weapons program.
Previous Freezes Targeted Iran and Russia-Linked Wallets
The Binance-related action follows several enforcement interventions by Tether during 2026.
In April, the company froze more than $344 million in USDT across two wallet addresses after receiving information from the US Treasury’s Office of Foreign Assets Control (OFAC) and American law enforcement agencies. OFAC subsequently identified the addresses as associated with the Central Bank of Iran.
In July, Tether froze another $130 million across four wallets following an expansion of US Treasury sanctions. These interventions brought the company’s Iran-related freezes during the year to nearly $550 million.
Separately, Tether froze approximately $23 million connected to the sanctioned Russian cryptocurrency exchange Garantex. The action was conducted in cooperation with the US Secret Service.
OFAC Compliance and International Investigations
Tether said its wallet-freezing policy is aligned with OFAC’s Specially Designated Nationals (SDN) List, which identifies individuals and entities subject to US sanctions.
The company also cited wallet addresses referenced in the Blumenthal report, claiming that it had frozen 99% of those addresses before blockchain analytics firm Chainalysis identified them as belonging to Iran. Tether characterized coverage surrounding the report as an attempt to spread misinformation about its compliance practices.
The company reported working with more than 360 law enforcement agencies across 73 countries on investigations involving illicit financial activities, including terrorist financing. The FBI and US Secret Service have also been granted access to its investigative platform.
Tether Freezes Over $1.5 Billion From Binance Hack, Keeping Funds Out of North Korea’s Reach.
Read more: https://t.co/yEA1D7qcPN
— Tether (@tether) November 2, 2026
As of October 31, 2026, Tether said it had helped freeze more than 3,590 wallets containing approximately $1.6 billion in USDT for the US Department of Justice, the Secret Service, and the FBI.
Tether Reports More Than $7 Billion in Frozen USDT
Tether reported that it has frozen more than $7 billion in USDT held in secondary-market wallet addresses, with most of the funds connected to fraud, cryptocurrency theft, decentralized finance exploits, and exchange security breaches.
The company added that approximately $1.2 billion in USDT obtained through fraud and theft had been returned to rightful owners and law enforcement agencies through token reissuance.
The latest Binance-related intervention reinforces the growing importance of cooperation between stablecoin issuers, blockchain analytics firms, and government agencies in addressing cryptocurrency-related crime.
However, the ability of centralized stablecoin issuers to freeze wallet balances also highlights the distinction between decentralized blockchain infrastructure and the administrative controls maintained by individual token issuers. As regulatory scrutiny increases, the effectiveness and transparency of these enforcement mechanisms are likely to remain important issues for the broader digital asset industry.
