Tether Freezes $544 million in Crypto Linked to Turkish Illegal‑Betting Investigation
Istanbul, 7 Feb 2026 – At the behest of Turkish law‑enforcement agencies, Tether Holdings SA has immobilised more than half a billion dollars of USDT tied to a suspected illegal online‑gambling and money‑laundering network. The move follows a court‑ordered seizure of approximately €460 million (about $544 million) of digital assets belonging to Veysel Şahin, a figure accused of operating underground betting platforms and funneling illicit proceeds through cryptocurrency.
The seizure
Prosecutors in Istanbul announced the asset freeze last week, describing the operation as a “massive betting bust.” While they initially withheld the name of the crypto firm involved, Tether’s chief technology officer, Paolo Ardoino, confirmed to Bloomberg that the company complied with the request after reviewing the information supplied by authorities. Ardoino said: “Law enforcement approached us, gave us details, and we acted in line with the country’s regulations. This is the same protocol we follow when cooperating with agencies such as the DOJ or the FBI.”
A broader crackdown
The action is part of an expansive crackdown on underground gambling and associated payment channels that have long been a point of focus for Turkish regulators. To date, the Turkish government reports that more than $1 billion in assets have been seized in related investigations.
Tether’s cooperation record
The USDT freeze adds to a growing list of compliance measures taken by stable‑coin issuers:
- Wallet blacklisting: Analytics firm Elliptic notes that by the end of 2025, Tether and Circle had placed roughly 5,700 wallet addresses—holding an estimated $2.5 billion—on a sanctions‑and‑crime watchlist. About 75 % of the blocked wallets held USDT at the time of restriction.
- Investigative assistance: Tether has disclosed that it has helped law‑enforcement teams in more than 1,800 cases across 62 jurisdictions, resulting in the freezing of $3.4 billion worth of USDT linked to alleged wrongdoing.
Nonetheless, USDT remains a focal point for regulators. In the United States, a Venezuelan national was recently charged with laundering $1 billion largely through the stablecoin, while other blockchain analyses have flagged USDT transactions as conduits for sanctions‑evading activity.
Market snapshot
Despite the legal scrutiny, USDT’s market footprint continues to expand. In the fourth quarter of 2025, the token’s market capitalisation hit an all‑time high of $187.3 billion, up $12.4 billion from the previous quarter. The token now dominates stable‑coin usage:
- Wallet adoption: Monthly active USDT wallets rose to 24.8 million, accounting for roughly 70 % of all stable‑coin‑holding addresses.
- Transaction volume: Quarterly on‑chain transfers topped $4.4 trillion across 2.2 billion transactions, setting new records for activity.
Competing stablecoins have struggled to keep pace. Circle’s USDC posted flat growth, while newer entrants such as Ethena’s USDe saw a decline of more than 50 % in value over the same period.
Analysis
The Turkish freeze underscores the dual reality facing stable‑coin issuers: on one hand, their tokens provide a fast, low‑cost medium for cross‑border transactions; on the other, that same liquidity makes them attractive for illicit finance. Tether’s willingness to act on law‑enforcement requests suggests a strategic shift toward greater regulatory alignment, likely aimed at preserving the token’s legitimacy and mitigating the risk of broader sanctions.
However, the sheer scale of the frozen assets—over $500 million in a single case—highlights the challenges regulators still face in tracing and intercepting illicit flows on public blockchains. While wallet blacklisting can stem the tide, sophisticated actors often migrate to newer addresses or alternative layer‑2 solutions, keeping the cat‑and‑mouse game ongoing.
Key takeaways
- Tether complied with Turkish authorities, freezing $544 million of USDT linked to an illegal betting ring.
- The case is part of a larger Turkish effort that has already seized more than $1 billion in assets connected to underground gambling.
- Stable‑coin issuers have increasingly adopted compliance tools, with roughly 5,700 wallets blacklisted and $3.4 billion of USDT frozen in 1,800+ investigations worldwide.
- USDT’s market cap reached a record $187 billion, and its on‑chain activity continues to outstrip that of rival stablecoins.
- Regulators remain vigilant: recent U.S. charges and ongoing sanctions‑evasion investigations keep the spotlight on USDT’s role in illicit finance.
The episode reinforces the growing importance of cooperation between crypto service providers and law‑enforcement agencies. As stablecoins cement their role in the global financial system, the balance between utility and regulatory compliance will likely shape the sector’s trajectory in the coming years.
Source: https://cointelegraph.com/news/tether-freezes-544m-crypto-turkey-illegal-betting?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
