Tether Freezes €460M for Turkey in Illegal Betting Crackdown
Tether confirms it executed the freeze of $550M in USDT linked to Turkish betting baron Veysel Şahin, signaling a new era of aggressive state-level compliance.
The "mystery international platform" behind Turkey’s largest-ever crypto seizure is no longer a mystery. Tether Holdings SA has frozen approximately €460 million ($550 million) in USDT linked to illegal betting kingpin Veysel Şahin, according to a fresh report from Bloomberg.
This is not a passive compliance move. It is a massive, directed enforcement action that signals Tether’s pivot to aggressive cooperation with sovereign states.
The Receipt: €460M Vanished
On Jan. 30, Istanbul prosecutors announced the freezing of assets tied to Şahin, a convicted betting baron accused of running a multi-billion dollar illicit gambling network. At the time, authorities cited cooperation from an unnamed "global firm."
Today’s revelation confirms that firm was Tether. The operation leveraged Turkey’s newly expanded judicial powers, which now allow prosecutors to directly seize crypto wallets in money laundering cases. The funds are currently in the process of being repatriated to Turkish state coffers.
The Target: Veysel Şahin
Şahin is not a low-level scammer. He is the alleged architect of a betting empire that processed billions in illicit flows. After fleeing Turkey following a controversial release from prison in 2023, he attempted to move his wealth on-chain. Tether’s blacklist function cut that escape route instantly.
“We are determined to dry up the financing of crime… This is a clear message to those who think crypto is a safe haven for illegal gains.”, Istanbul Chief Public Prosecutor’s Office (Jan. 30 Statement)
Institutional Context: The Compliance Moat
This freeze fits a rapidly solidifying pattern. Tether is no longer the renegade of 2017. It is positioning itself as a geopolitical tool for the West and its allies. By voluntarily freezing over $1 billion in assets over the last year, targeting everything from Hamas financing to North Korean hackers, Tether is buying regulatory survival.
For users, the implication is binary. USDT is the most liquid asset in crypto, but it is not censorship-resistant. If a state actor with a valid warrant knocks on Tether’s door, the freeze is absolute.
