Yes. Tether can block USDT held at a specific address on the blockchains where it issues the token, so those tokens can no longer be transferred. Tether generally acts at the request of law enforcement or on well-documented reports, and only on USDT that is still at the address. A freeze is not a refund: returning the funds to the victim usually requires a decision by the authorities.
How the freeze works
USDT is a centralised token. Its smart contracts include a function that lets the issuer put an address on a block list. Once an address is blocked, any attempt to transfer USDT from it fails. Other assets at the same address, such as ETH or TRX, are not affected.
The issuer can also remove blocked tokens from circulation and issue an equivalent amount to another address. This is the technical route by which blocked USDT can later be returned, once a competent authority, for example a prosecutor or court in the victim's country, has decided who is entitled to it.
When Tether acts
Tether reviews requests case by case. Requests coming from police, prosecutors or courts carry the most weight. Reports from victims and their advisers can also lead to action when they are precise and well documented, especially when a criminal complaint has already been filed.
A freeze is only possible while the USDT is still at the address. If it has been swapped into another asset or deposited at an exchange, the request must go elsewhere: to the exchange that holds the account.
What a good request contains
- The blockchain (for example Tron or Ethereum), addresses and transaction hashes.
- A tracing that shows the path from the victim's wallet to the address to be blocked.
- Amounts, dates and a short, factual description of the theft.
- A copy or reference of the criminal complaint and the contact of the competent authority.
- The identity of the victim and of the lawyer or adviser acting for them.
Limits to keep in mind
Tether can only act on USDT, not on other tokens. Thieves who know this often swap USDT quickly into assets that cannot be frozen. That is why the first hours matter, and why a request to Tether is usually one of several sent in parallel to issuers and exchanges.
How Advisorn helps
Advisorn Forensics identifies which addresses still hold USDT, checks whether they are already blocked, and prepares documented freeze requests to Tether and to the exchanges involved, coordinated with your lawyer's complaint.
Examples of seizure rules: Swiss Criminal Procedure Code art. 263; Italian Code of Criminal Procedure art. 321.
Updated November 2026 · General information, not legal or tax advice on your specific case.