Tether has frozen $344 million in USDT linked to illicit activities in collaboration with U.S. authorities. The action involved two wallet addresses flagged for suspected criminal use, with law enforcement requesting immediate intervention. This move is part of Tether's broader compliance strategy, emphasizing its ability to act swiftly against illicit financial flows. The company reported working with over 340 law enforcement agencies globally, contributing to more than 2,300 cases and freezing over $4.4 billion in USDT. U.S. authorities accounted for a significant portion of these actions, with over 1,200 cases and approximately $2.1 billion in frozen funds. Tether's CEO, Paolo Ardoino, highlighted the firm's rapid response capabilities to prevent further risks to users and financial systems. Tether's announcement comes amid increased scrutiny on stablecoins following recent DeFi exploits. The firm has positioned USDT as a more responsive option compared to rivals like Circle, which faced criticism for delayed actions in freezing stolen USDC funds. Tether extended $127.5 million in bailout funds to Drift Protocol, which agreed to use USDT as its primary stablecoin.