Tether Freezes $39.27M in USDT Tied to Sanctioned Xinbi Network

Tether has frozen about $39.27 million in USDT held across 10 Tron addresses, after blockchain analytics firm MistTrack linked the wallets to Xinbi Guarantee. The action, taken on Sept. 8, extends Tether's ongoing effort to restrict addresses believed to be connected to criminal activity. Xinbi's parent company has been under U.K. sanctions since March, tied to alleged links with scam operations in Southeast Asia. ### Blacklisting and freezes accelerate The latest freeze adds to a broader wave of enforcement activity by the stablecoin issuer. BlockSec data shows Tether blacklisted 376 addresses over the past 30 days and froze $169.71 million in USDT across Tron and Ethereum during that period. Over the last six months, Tether has frozen $1.44 billion in funds, with most of the value associated with the Tron network, and blacklisted 2,743 addresses. CEO Paolo Ardoino has said USDT will not serve as a refuge for illicit activity, stating in April that Tether acts quickly once it identifies a credible connection to sanctioned entities or criminal networks. Tether's aggressive approach has also drawn scrutiny. The company is facing a lawsuit from two Thai businessmen who allege Tether froze $42.4 million in USDT without legal authority, reportedly following an informal request from a U.S. law enforcement agent and without a court order or warrant. A judge later issued a seizure warrant three months afterward, but the plaintiffs argue it cannot apply retroactively. Tether has continued to emphasize compliance, including hiring KPMG to conduct an audit. ### USDT keeps roughly 60% market share USDT remains the dominant stablecoin even as recent supply growth has been modest. DeFiLlama data put USDT market capitalization at about $183.37 billion on Sept. 9, representing roughly 60.1% of the stablecoin market. Total stablecoin capitalization stood near $305.2 billion, up around 1.5% over the past 30 days. USDT supply increased about 0.15% over the same period. USD Coin (USDC) rose about 2.9% to roughly $74.37 billion. Together, USDT and USDC accounted for about 84.5% of total stablecoin market value. Ripple USD (RLUSD) posted faster percentage growth, with supply reaching around $2.43 billion after rising roughly 53.5% over the prior month. The increase reflects growth off a smaller base and does not materially threaten USDT's market lead. ### U.S. regulation: next catalyst The next major U.S. regulatory milestone is expected to come from implementation of the GENIUS Act. The Treasury has proposed multiple rules under the stablecoin law during 2026 and said the law's primary issuance restrictions are expected to take effect Jan. 18, 2027. At that point, payment stablecoin issuers operating in the U.S. would generally need an approved federal or state regulatory pathway, a shift that could reshape competition among regulated issuers. As USDT continues to represent roughly three-fifths of global stablecoin capitalization, enforcement actions and compliance controls are likely to remain central to Tether's strategy. This content is for informational purposes only and does not constitute legal, financial, or investment advice. Readers should conduct independent research before making financial decisions.