Tether has frozen more than half a billion dollars in cryptocurrency at the request of Turkish authorities, blocking funds allegedly linked to illegal online betting and money laundering activities.
Prosecutors in Istanbul last week announced the seizure of approximately €460 million ($544 million) in assets belonging to Veysel Sahin, who is accused of operating unlawful betting platforms and laundering illicit proceeds. While officials initially declined to name the crypto firm involved, Tether Holdings SA, the issuer of the world’s largest stablecoin, USDt (USDT), was responsible for freezing the funds, according to comments from CEO Paolo Ardoino reported by Bloomberg.
“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,” Ardoino reportedly said. He added that the company follows the same approach when cooperating with agencies such as the US Department of Justice and the FBI.
Freeze part of broader crackdown
The freeze forms part of a broader crackdown on underground gambling and payment networks in Turkey. Authorities have already seized more than $1 billion in assets through related investigations, Bloomberg reported. As the crackdown continues, Turkey blocked access to 233,000 illegal betting and gambling websites in 2024, according to data from January.
Separately, Turkey is also grappling with a scandal that has shaken its football community. Turkish court jailed over 40 suspects, including Super Lig players, pending trial as part of an expanding betting investigation that authorities warn may continue to widen. The arrests were part of a betting scandal that saw the Turkish Football Federation (TFF) suspend almost 150 match officials for betting.
Stablecoin blacklists grow
Blockchain analytics firm Elliptic estimates that by late 2025, stablecoin issuers, primarily Tether and Circle, had blacklisted around 5,700 wallets containing roughly $2.5 billion in digital assets. About 75 percent of those frozen addresses held USDT at the time of blacklisting.
Tether told Bloomberg it has assisted law enforcement in more than 1,800 investigations across 62 countries, resulting in the freezing of approximately $3.4 billion in USDT connected to alleged criminal activity.
USDT market cap reaches new high
The enforcement action comes as Tether’s dominance in the stablecoin market continues to grow. According to Cointelegraph, USDT reached a record market capitalisation of $187.3 billion in the fourth quarter of 2025, expanding by $12.4 billion despite a broader crypto market downturn triggered by October’s liquidation cascade.
Illegal betting, a concern for Turkey
Illegal betting is an increasingly concerning issue in Turkey despite strict regulations. Despite a 1998 casino ban and restrictions on non-state online gambling since 2006, illicit gambling thrives.
Turkey is facing increasing concern over the rise of youth gambling, particularly through online platforms. Of particular concern is the growing participation of minors, including children as young as nine, who are accessing online gambling sites, partly because of inadequate age verification systems and the use of cryptocurrencies for transactions. Organised crime syndicates also exploit the appeal of online platforms, with promotions targeting millions of social media users, especially the youth. In 2024, neighbouring Bulgaria’s regulator blocked over 2,500 websites involved in unauthorised gambling activities.
Some reports estimate that illegal betting schemes have affected over 10 million Turks. Inevitably, this leads to financial losses for the individual and the economy. According to the Financial Crimes Investigation Board, Turkey’s illicit market betting alone is said to exceed 100 billion lira ($2.29 billion).
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