Tether Faces Legal Action for $344 Million in Frozen USDT Linked to Terrorism

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Tether Faces Legal Action for $344 Million in Frozen USDT Linked to Terrorism

First seen 17 May 2026, 00:50 UTC • •58.0

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ThreatCluster •May 18, 2026 at 00:46 UTC

•Victims of Iranian-backed terrorism are seeking $344 million in frozen USDT from Tether.
•The funds were frozen due to OFAC sanctions against designated IRGC wallet addresses.
•Attorney Charles Gerstein aims to use crypto infrastructure to recover long-unpaid terrorism judgments.

Victims of Iranian-backed terrorism have filed a motion in a Manhattan federal court seeking to compel Tether to release over $344 million in frozen USDT stablecoins. The funds were frozen after the U.S. Treasury's OFAC designated two Tron wallet addresses as linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). The plaintiffs, including survivors of past terrorist attacks, argue that the frozen USDT constitutes 'blocked property' under federal law, making it subject to seizure to satisfy their long-standing court judgments against Iran. Attorney Charles Gerstein is leading this legal effort, which builds on previous attempts to recover funds from crypto platforms. The case is currently pending, and no ruling has been issued yet. This legal strategy could set a precedent for how digital assets are treated in terrorism-related cases.

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Timeline

2026-05-15

Legal motion filed against Tether

Victims of Iranian-backed terrorism filed a motion in Manhattan court to compel Tether to release frozen USDT linked to IRGC.

2026-05-16

Details of the case reported

Further details emerged about the legal strategy and implications for digital asset recovery in terrorism cases.

More articles in this cluster (2)

Threat Graph

9 entities, 8 inferred relationships (STIX 2.1).

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Threat Actor (1)

Lazarus Group

Technique (1)

Hacking

Organization (5)

Arbitrum
KelpDAO
Railgun DAO
Tether
Ethereum

Affected Platform (2)

THORChain
TRON

Relationships

Lazarus Group uses Hacking
Lazarus Group targets Arbitrum
Lazarus Group targets KelpDAO
Lazarus Group targets Railgun DAO
Lazarus Group targets Tether
Lazarus Group related to Ethereum
Lazarus Group related to THORChain
Lazarus Group related to TRON

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