Issuer of the world’s largest stablecoin, Tether, in collaboration with the U.S. Department of Justice (DOJ), froze $1.6 million in USDT associated with wallets linked to BuyCash. Interestingly, in compliance with regulatory efforts, Tether reissued the funds to the authorities who claim it’s linked to terrorism financing.
BuyCash is a Gaza-based remittance company that transmits payments through various services, including crypto. The U.S. authorities accused the platform of providing financial support to Hamas, a terrorist organization. Tolling that line, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on BuyCash in October 2023.
Tether Assists DOJ in Crime Investigation
Notably, the move is part of a DOJ civil forfeiture case involving nearly $2 million in crypto assets. According to the agency’s official press release, the authorities identified the suspicious wallets through secondary market intelligence, which led to Tether’s cooperation. The stablecoin firm has once again cemented its rank in the department’s hall of fame.
Tether has repeatedly assisted the DOJ in multiple high-profile cases. For example, it helped the DOJ seize over $6 million in September 2024 from a crypto scheme. More recently, it played a key role in a $225 million USDT seizure in June 2025 related to a pig butchering scam. Acknowledging its role in confiscating about $2 million in the BuyCash case, the agency noted:
“The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets.”
According to Tether’s official statement, the firm has assisted over 275 agencies across 59 jurisdictions, freezing more than $2.9 billion in USDT. Commenting on the company’s role as a compliance firm in global law enforcement, the CEO, Paolo Ardoino, said:
“Unlike traditional financial systems, where illicit flows often go unseen, USDT is traceable, transparent, and accountable. We remain fully committed to continue working with law enforcement around the world to disrupt financial crime, as demonstrated by our ongoing support of investigations in the U.S. and beyond.”
Terrorists Embrace Crypto
Crypto has been used by extremist organizations worldwide to fund operations, often utilizing mixers and unhosted wallets. In 2024, Chainalysis reported that nearly 61.5% of illicit crypto flows went to sanctioned or terrorist-linked entities.
In Michigan, Jibreel Pratt, a 26-year-old Detroit resident, recently pleaded guilty to concealing Bitcoin donations intended for ISIS, another terrorist organization. He admitted to using VPNs and encrypted wallets to obfuscate the origin and destination of funds meant to support ISIS.
