Tether Freeze Gap Becomes Laundering Loophole for Criminals An Analytical Report

AMLBot Team

• 1 min read
Updated: May 15, 2025
Tether Freeze Gap Becomes Laundering Loophole for Criminals An Analytical Report
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Tether’s USDT stablecoin is usually perceived as a compliance-friendly instrument in the crypto industry, with the company using its ability to freeze suspicious wallets as per law enforcement requests. 

However, AMLBot’s Forensics Team finds a critical vulnerability: a significant lag between the initiation of a freeze and its on-chain enforcement – a delay that has already enabled the movement of over $78 million in USDT across Tron and Ethereum.

🔍 What’s Inside:

  • On-Chain Proof of How Criminals Exploit USDT Freeze Delays
  • A Step-by-Step Breakdown of the Vulnerability in Tether’s Blacklisting Mechanism
  • Real Transaction Data, Visuals, and the 44-Minute Window That Made It Possible
  • Two Datasets for Deeper Analysis
  • Expert Insights from AMLBot’s Investigation Team

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Stay safe,The AMLBot Team