18 JULY, 2025 – Tether, the largest company in the digital assets industry, announced today that it has assisted the São Paulo Public Prosecutor’s Office (MPSP) and Brazilian Federal Police to freeze R$32 million tied to a wide-ranging money laundering and cyber fraud operation, codenamed Operation Magna Fraus.
Launched on July 15 and 16, Operation Magna Fraus targeted an alleged criminal organization involved in large-scale financial fraud, unauthorized system intrusions, and laundering of stolen funds via Brazil’s PIX instant payment system. During the operation, authorities executed arrest and search warrants across Goiás and Pará, ultimately recovering R$5.5 million in crypto and blocking R$32 million in USDT, with the direct support of Tether.
Authorities also located a private key used to access stolen crypto assets and transferred those assets into custody. These funds will be liquidated and deposited into a judicial account under the Criminal Court Specialized in Tax Crimes, Criminal Organizations, and Money Laundering in São Paulo for further proceedings.
Over the past year, Tether has actively worked with global law enforcement in assisting in multiple seizures of illicit funds across various jurisdictions. Last June, Tether was acknowledged by the US Department of Justice (DOJ) for its assistance in a major enforcement action involving the seizure of approximately $225 million in USDT. In March this year, Tether assisted the U.S. Secret Service in freezing $23 million in illicit funds tied to transactions on the Russian-sanctioned exchange Garantex and helped freeze $9 million connected to the Bybit hack. As of today, Tether has blocked over 5,000 wallets, assisting law enforcement, with over 2,800 in coordination with U.S. agencies.
Tether currently partners with more than 275 law enforcement agencies across 59 jurisdictions. The company maintains a proactive wallet-freezing policy in accordance with the OFAC Specially Designated Nationals (SDN) List and national regulatory bodies, ensuring illicit activity tied to sanctioned individuals or criminal networks is swiftly contained.
“Tether’s ability to track transactions and freeze USDT linked to illicit activity sets it apart from the traditional financial system that works mostly as a disconnected black box,” said Paolo Ardoino, CEO of Tether. “We take our responsibility to combat financial crime seriously and will continue working closely with global law enforcement agencies, including our most recent cooperation with Brazilian authorities, to prevent bad actors from exploiting stablecoin technology.”
Tether remains resolute in its commitment to combat illicit activities and safeguard the integrity of the cryptocurrency ecosystem. By leveraging advanced tracking tools, Tether enhances law enforcement’s ability to trace USDT transactions across multiple blockchains, strengthening the global fight against illicit financial flows. For more information on Tether’s proactive efforts and actions, visit TetherFacts.
