# Tether Freezes 131 Wallets, Showing Stablecoins as Sanctions Infrastructure

A United States sanctions update naming Islamic State Khorasan addresses was neutralized on-chain within hours, except for the coins held in Monero.

- Published: 2026-07-03T10:31:01.881Z
- Canonical: https://polylog.news/crypto/2026-07-03/tether-freezes-131-wallets-showing-stablecoins-as-sanctions
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CryptoSlate](https://cryptoslate.com/tether-freezes-isis-k-wallets-proving-that-stablecoins-now-side-inside-a-sanctions-machine/), [crypto.news](https://crypto.news/rbi-calls-for-banking-restrictions-on-crypto-and-private-stablecoins/)

Tether froze the USDT held in 131 wallets after the United States Office of Foreign Assets Control (OFAC) added 134 cryptocurrency addresses tied to Islamic State Khorasan (ISIS-K) to its sanctions list on July 1. As CryptoSlate reported, t…

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