Tether Freezes $500M in Crypto Tied to Illegal Gambling and Money Laundering

Stablecoin issuer takes action at request of Turkish authorities, highlighting crypto's limits on 'censorship resistance'

Published on Feb. 7, 2026

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Tether, the issuer of the world's most traded stablecoin USDT, has frozen over $544 million in digital assets linked to an illegal betting and money laundering operation in Turkey. This action, taken at the request of Turkish authorities, targets Veysel Sahin, accused of running illicit gambling platforms. The move signals a significant shift in the relationship between cryptocurrency firms and global law enforcement, and raises questions about the future of 'censorship resistance' in the digital asset space.

Why it matters

This case highlights the growing collaboration between cryptocurrency companies and law enforcement, challenging the long-held belief in the 'censorship resistance' of cryptocurrencies. As stablecoins like USDT become more ubiquitous, they are also becoming potential targets for authorities seeking to disrupt illicit financial activity.

The details

The Turkish investigation, led by Istanbul's Chief Public Prosecutor's Office, initially froze €460 million (approximately $543 million) in assets belonging to Sahin. Tether subsequently froze an additional $500 million in crypto linked to his associates, bringing the total seized to over $1 billion. This represents one of the largest single asset freezes in the cryptocurrency industry to date.

  • The Turkish investigation began in 2026.

The players

Tether

The issuer of the world's most traded stablecoin USDT.

Veysel Sahin

An individual accused of running illicit gambling platforms in Turkey.

Istanbul's Chief Public Prosecutor's Office

The Turkish law enforcement agency leading the investigation.

Paolo Ardoino

The CEO of Tether.

Anchorage Digital

The first federally regulated digital asset bank in the United States, in which Tether has made a $100 million strategic investment.

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What they’re saying

“Law enforcement came to us, they provided some information, we looked at the information and we acted in respect of the laws of the country.”

— Paolo Ardoino, CEO of Tether

What’s next

The Turkish authorities are expected to continue their investigation into the illegal gambling and money laundering operation, with the potential for further asset seizures and criminal charges.

The takeaway

This case demonstrates that even decentralized cryptocurrencies are not immune to centralized control, as stablecoin issuers like Tether can freeze assets at the request of law enforcement. It raises questions about the future of 'censorship resistance' in the digital asset space and highlights the growing collaboration between crypto firms and global authorities.