First of all, after a joint investigation with OKX and the US Department of Justice, Tether announced the voluntary freezing of the largest amount of USDT in history, amounting to 225 million dollars. The measure is related to an alleged link of the funds with an international criminal organization for human trafficking in Southeast Asia, as reported by the company in a statement.
Simultaneously, in a legal dispute, more than $1 billion in USDT deposited by Tether in a subsidiary of Britannia Financial, a British investment bank, are caught in a legal conflict between Britannia Financial and Arbitral International. The latter claims that Britannia Financial did not make the full payment agreed upon in the purchase of a brokerage in the Bahamas. The situation is complicated by Britannia Financial's refusal to recognize the debt, arguing that Tether chose to deposit the funds in its subsidiary in London instead of in the acquired brokerage.
These events add another layer of controversy to Tether, which has already been under scrutiny for its lack of full backing and doubts about the stability of its stablecoin.
The company, which has frozen funds in the past due to alleged criminal links, now faces a legal challenge in the UK as it tries to maintain user confidence and ensure the liquidity needed to handle potential USDT redemptions.
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