USDt Supply Shrinks as Tether Assists Global Crackdowns

[bonk]

In recent enforcement actions, Tether assisted the US Department of Justice in freezing nearly $61 million in USDt linked to “pig-butchering” scams. The company also blocked roughly $544 million in crypto at the request of Turkish authorities investigating alleged illegal betting and money-laundering operations. Blockchain analytics firm Elliptic estimates that by late 2025, Tether and Circle had blacklisted around 5,700 wallets holding approximately $2.5 billion.

At the same time, USDt’s circulating supply has fallen by about $1.5 billion in February, following a $1.2 billion decline in January — marking the sharpest contraction since the 2022 market turmoil. While some interpret the drop as tightening liquidity, Tether maintains it reflects short-term distribution shifts rather than weakening demand, noting that USDC also saw multibillion-dollar supply reductions during the same period.

[kevin1]

usdt supply drops and everyone suddenly becomes a macro liquidity expert