Tether Freezes $46M of USDT Held by FTX Following Law-Enforcement Request

The stablecoin lost its $1 peg earlier on Thursday.

AccessTimeIconNov 10, 2022 at 2:35 p.m. UTC
Updated May 9, 2023 at 4:02 a.m. UTC

Stablecoin issuer Tether has frozen $46 million of USDT held on the Tron blockchain by failing crypto exchange FTX following a request from law enforcement.

According to Tron block explorer Tronscan, the wallet belongs to FTX, the crypto exchange that halted withdrawals earlier this week following liquidity issues.

"We are starting to receive requests from LE to temporarily freeze assets while an investigation occurs," a Tether executive told CoinDesk, using an acronym for law enforcement.

A Tether spokesperson told CoinDesk via email that “while we cannot specifically comment, Tether routinely has open dialogue with law enforcement agencies, including the U.S. Department of Justice, as part of our commitment to cooperation, transparency, and accountability."

USDT fell 3% from its $1 peg earlier Thursday as contagion begins to spread following FTX's plight. It was recently trading at just a fraction below $1.

UPDATE (Nov. 10, 14:50 UTC): Adds that the frozen wallet belongs to FTX.

UPDATE (Nov. 10, 19:14 UTC): Adds comment from Tether spokesperson.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.