Tether's T3 Financial Crimes Unit, alongside the Tron network and TRM Labs, has frozen $126 million in USDT since August 2024. The unit collaborates with global law enforcement to halt illicit transactions, monitoring $3 billion in USDT volume this year. Nearly half of the frozen funds, $56 million, were linked to money laundering, while $36 million were tied to investment scams.

While these actions aim to return stolen assets and deter crime, they spark debate in the crypto community. Critics argue that centralized control threatens financial autonomy and could lead to censorship.