Tag: USDT

  • Tether Assists US Authorities in Freezing $550 Million in Iran-Linked USDT Amid Expanded Sanctions

    Tether Assists US Authorities in Freezing $550 Million in Iran-Linked USDT Amid Expanded Sanctions

    Tether announced on Monday that it helped US authorities freeze nearly $550 million in Iran-linked USDT this year, as Washington expands sanctions involving cryptocurrency networks. The stablecoin issuer detailed two major freezes involving TRON addresses linked to US sanctions, which together accounted for more than $474 million of the total.

    April Freeze Targets Central Bank of Iran

    In April, Tether locked more than $344 million in USDT across two TRON addresses after receiving information from US authorities. The Treasury’s Office of Foreign Assets Control (OFAC) added both addresses to its Central Bank of Iran sanctions entry on April 24, linking the bank to the IRGC Qods Force and Hezbollah.

    July Freeze Follows OFAC Expansion

    OFAC later added four more TRON addresses to the same sanctions entry on July 14. Tether then froze more than $130 million in USDT across those wallets. The April and July actions together totaled more than $474 million. Tether said its Iran-related freezes this year reached nearly $550 million, though it did not itemize the remaining amount.

    Tether CEO Paolo Ardoino noted that public blockchains give authorities greater visibility into fund movements than cash, and that Tether can respond when law enforcement provides credible information.

    US Treasury Intensifies Pressure on Iran-Linked Networks

    The freezes came as the US Treasury increased pressure on Iran-linked financial networks. In June, Treasury sanctioned Nobitex, Iran’s largest cryptocurrency exchange, for helping Iran’s central bank obtain stablecoins that supported the falling rial. Treasury Secretary Scott Bessent launched Operation Economic Outcast on August 24, targeting financial networks connected to the Iranian government. The initiative covers digital assets, technology, gold, aviation, and shipping, as Treasury said Iran increasingly uses cryptocurrency to avoid sanctions, including transactions connected to the IRGC.

    On September 17, OFAC sanctioned Iranian crypto exchange BitBank, which Treasury said is controlled by sanctioned financier Babak Zanjani. Treasury alleged that BitBank moved hundreds of millions of dollars in Bitcoin to the IRGC during June and July.

    Broader Enforcement and Collaboration

    Tether also said it has worked with Israel’s National Bureau for Counter Terror Financing for several years. Through more than 40 referred cases, Tether froze over 22 million USDT. In September 2025, the bureau published 187 crypto addresses linked to the IRGC, and blockchain analytics firm Elliptic said those wallets received $1.5 billion in USDT. Tether later blacklisted 39 of those addresses and froze nearly $1.5 million remaining in them.

    Across all enforcement-related cases, Tether has helped freeze more than $4.9 billion, with over $2.4 billion of that amount involving US authorities.

    EQIBank Exposure Raises Separate Questions

    Tether has also disclosed exposure to EQIBank, which is challenging a US seizure involving payment processor Capstone Limited. On September 25, Tether told PYMNTS that its exposure represented less than 0.034% of the Tether group’s assets, without providing a dollar figure. The company did not say whether that exposure forms part of the reserves backing USDT. The US government filed a civil forfeiture complaint in July, listing about $83.03 million across three bank balances and approximately 1.18 million USDT at two addresses. A later court order identified the bank accounts as belonging to Capstone, but the court record does not identify the listed property as Tether’s assets. EQIBank sought the return of seized property, but a court denied that motion, leaving the final forfeiture case unresolved.

  • Bitcoin ETF Inflows, Tether Freeze, and BitMine’s 6M ETH Milestone: Crypto News Roundup

    Bitcoin ETF Inflows, Tether Freeze, and BitMine’s 6M ETH Milestone: Crypto News Roundup

    Bitcoin ETFs See $31 Million in Net Inflows

    Spot Bitcoin exchange-traded funds recorded a net inflow of $31.07 million on the latest trading day, according to SoSoValue. BlackRock’s IBIT led the charge with a daily net inflow of $54.84 million, bringing its historical net inflow to $65.34 billion. Grayscale’s BTC fund followed with $10.32 million in net inflows, while its GBTC product experienced the largest net outflow at $23.19 million. The total net asset value of all Bitcoin spot ETFs now stands at $107.82 billion, with a cumulative historical net inflow of $57.58 billion.

    Tether Freezes $550 Million in Iran-Linked USDT

    Stablecoin issuer Tether announced on September 28 that it had helped freeze approximately $550 million in USDT held in wallets connected to Iran. The company stated that the freeze was part of its ongoing cooperation with U.S. law enforcement, targeting addresses linked by U.S. authorities to the Central Bank of Iran and its sanctions networks. In April, Tether had already frozen more than $344 million in USDT across two addresses at the request of the Treasury Department’s Office of Foreign Assets Control (OFAC).

    Hedera Hits Eight-Month High

    Hedera’s native token HBAR surged roughly 25% in a single day, reaching its highest level since early January at around $0.13 before settling back to $0.12. This represents a 60% increase over the past two weeks. The rally pushed Hedera’s market capitalization above $5 billion, making it the 26th-largest cryptocurrency and surpassing Avalanche (AVAX) and Sui (SUI). A key catalyst for the uptrend was the partnership between IBM and the Hashgraph Group to bring Hedera-based IDTrust to IBM Cloud, enabling verifiable digital identity for AI agents.

    Verona Launches verUSD Stablecoin for AI Agents

    The Verona network (formerly XION) has launched verUSD, a dollar-pegged stablecoin designed for settling transactions and purchasing verified data between artificial intelligence agents. Unveiled at Korea Blockchain Week in Seoul, the stablecoin is backed by over $100 million in institutional commitments, including more than $60 million in contracted revenue volume and capital from firms such as Animoca Ventures, Figment Capital, and Sfermion. Issued through Brale and backed 1:1 by U.S. bank reserves, verUSD is initially available on Ethereum, Polygon, Avalanche, Optimism, Arbitrum, Celo, and Solana.

    BitMine Crosses 6 Million ETH

    Ethereum treasury company BitMine Immersion Technologies reported that its ether holdings have surpassed six million tokens, reaching 6,001,302 ETH, or approximately 4.9% of Ethereum’s 122.1 million-token supply. The NYSE-listed firm valued its combined crypto, cash, marketable securities, and equity stakes at $17.2 billion as of September 27. BitMine is now 98% of the way to its ‘Alchemy of 5%’ goal of holding 5% of all ether in circulation. Of its total holdings, 5,067,309 ETH (about 84%) is staked, valued at $2,698 per token based on Coinbase prices.

    FAQs

    How much flowed into Bitcoin spot ETFs yesterday?

    Bitcoin spot ETFs recorded $31.07 million in net inflows, led by BlackRock’s IBIT with $54.84 million, while Grayscale’s GBTC saw $23.19 million in outflows.

    Why did Tether freeze $550 million in USDT?

    Tether stated the freeze resulted from cooperation with U.S. law enforcement, targeting wallets linked by U.S. authorities to Iran’s central bank and sanctions networks. Approximately $344 million was frozen across two addresses in April.

    Why did Hedera’s HBAR price rise?

    HBAR jumped roughly 25% in a day and 60% over two weeks, reaching around $0.13. The rally coincided with an IBM-Hashgraph Group initiative involving Hedera-based digital identity infrastructure for AI agents.

    What is Verona’s verUSD stablecoin?

    verUSD is a dollar-pegged stablecoin designed for transactions and verified-data purchases between AI agents. It launched with over $100 million in institutional commitments and support across several blockchain networks.

    How much Ethereum does BitMine hold?

    BitMine reported holdings of 6,001,302 ETH, equivalent to about 4.9% of Ethereum’s total supply. Approximately 5.07 million ETH (84% of its holdings) is staked.

  • Column Launches Unified Stablecoin and Banking Platform for USDC and USDT Payments

    Column Launches Unified Stablecoin and Banking Platform for USDC and USDT Payments

    Column has introduced four financial infrastructure products that bring stablecoins, card issuing, global banking, and multicurrency accounts together on a single platform. Announced on September 16, the rollout enables fintech companies to use USDC and USDT alongside traditional bank accounts, cards, and payment networks.

    Column co-founder William Hockey said the launch completes a multi-year effort to build the company’s technology stack. In a company post, Hockey stated, “We have finally completed that build.” He added that the products are already handling billions of dollars for fintech companies, including Ramp, Brex, Bilt, Mercury, Slash, and Kapital.

    Stablecoin Services Integrated with Bank Payment Rails

    Column’s stablecoin service allows businesses to send and receive USDC and USDT while converting funds to and from US dollars at any time, 24/7. The company built the service directly into its banking core, so customers do not need to prefund balances with a separate provider before making a stablecoin transfer. The platform connects stablecoin activity with both US and international payment rails.

    For example, a business receiving USDC from Mongolia could convert the funds into dollars, split the money, send one portion to a US community bank through FedNow, and convert another into euros for a SWIFT payment. Column said the entire process can take place within seconds via its APIs and operates around the clock, including weekends and holidays.

    Card Issuing Combines Banking, Processing, and Capital

    Column also launched a card issuing product after building its own issuer processor. The service brings together the issuing bank, processing system, and capital into a single integration. Customers can use the platform to create credit, debit, prepaid, and stablecoin-backed card programs on the Visa and Mastercard networks. Column had previously sponsored card programs but now controls the processing layer, allowing it to manage card authorization and settlement within the same system that supports its banking products. This reduces the number of separate providers fintech companies need when launching card programs. The processor has direct connections to Visa and Mastercard and runs on the same core infrastructure used for Column’s other banking services.

    Global Banking and Multicurrency Accounts

    The third product extends Column’s account and card infrastructure to verified customers outside the United States. Businesses can offer US dollar or local currency accounts and cards to eligible users in other markets while using the same compliance tools and APIs used for domestic customers. Column did not publish a full list of supported countries, so availability depends on its banking and verification coverage.

    Column also introduced multicurrency accounts that allow customers to receive, hold, and send foreign currencies. Users can convert supported currencies to and from US dollars instantly and connect payments to international systems, including SEPA Instant. Supported currencies include euros, British pounds, and Canadian dollars, among others.

    Together, the four products enable fintech companies to connect stablecoins, bank accounts, cards, and foreign currency payments through one platform. Column said the services work together because they use the same underlying infrastructure. The company did not provide separate transaction volumes for each product, but Hockey noted the services are already moving billions of dollars for fintech customers.

  • Bitcoin ETFs See $120M Outflows, LAPTOP Memecoin Crashes 95%, Pepe Whales Dump 80B Tokens

    Bitcoin ETFs See $120M Outflows, LAPTOP Memecoin Crashes 95%, Pepe Whales Dump 80B Tokens

    The cryptocurrency market witnessed several major developments recently, including significant outflows from spot Bitcoin ETFs, a dramatic collapse of a politically themed memecoin, large-scale selling by Pepe whales, a US Secret Service freeze on USDT, and a groundbreaking blockchain initiative for India’s grain storage network.

    Bitcoin Spot ETFs Record $120 Million in Net Outflows

    According to data from SoSoValue, Bitcoin spot ETFs saw a total net outflow of $120.24 million yesterday. The ETF with the highest net inflow was Morgan Stanley’s MSBT, which attracted $4.49 million, bringing its cumulative net inflow to $520.89 million. Conversely, Ark Invest and 21Shares’ ARKB experienced the largest net outflow of $77.98 million, though its historical net inflow remains at $1.39 billion. The total net asset value of all Bitcoin spot ETFs now stands at $99.33 billion, with an ETF net asset ratio of 6.31% and a historical cumulative net inflow of $55.45 billion.

    Hunter Biden’s LAPTOP Memecoin Collapses Over 95%

    The LAPTOP memecoin, named after Hunter Biden, lost more than 95% of its value within one hour of trading opening on the Base network. A wallet analysis by Bubblemaps revealed that 12,151 out of 15,206 buyers ended up losing money—roughly 80% of all purchasers. While 3,026 addresses turned a profit and 29 broke even or could not be assessed, the majority of losses were small: 11,311 wallets lost less than $1,000 each.

    Pepe Whales Sell 80 Billion Tokens

    Pepe (PEPE) remained under pressure, trading near $0.00000348 after failing to break through a key resistance level. On-chain data indicates that large holders have been reducing their positions. Wallets holding between 10 million and 100 million PEPE have collectively sold approximately 80 billion tokens since August 25. This distribution suggests profit-taking after a recent rally. Over the same period, smaller and mid-sized wallets (holding between 100,000 and 10 million PEPE) accumulated a combined 5.06 billion tokens.

    US Secret Service Freezes $52.8 Million in USDT

    The United States Secret Service froze $52.8 million in the stablecoin USDT across 52 wallets linked to Xinbi Guarantee, an illegal marketplace operating on Telegram. The operation was enabled by intelligence from blockchain analytics firm Elliptic and coordinated with the Office of Foreign Assets Control (OFAC), which designated the platform as a transnational criminal organization. Xinbi acted as an escrow service laundering proceeds from global fraud schemes, including pig butchering, processing over $24 billion since 2022.

    India’s $2 Billion Grain Network Goes On-Chain

    Arya.ag has begun recording data tied to approximately $2 billion in stored crops on an Avalanche-based blockchain for agricultural lenders in India. The system records grain deposits, electronic warehouse receipts, and loan status, enabling authorized lenders to verify crops offered as collateral. Infosys co-founder Nandan Nilekani announced the project at the Global Fintech Festival in Mumbai. The $2 billion figure represents the estimated value of crops held across Arya.ag’s warehouse network, not the value of loans recorded on the blockchain.

  • Who Regulates Tether (USDT)? A Global Guide to Stablecoin Oversight in 2026

    Who Regulates Tether (USDT)? A Global Guide to Stablecoin Oversight in 2026

    Tether’s USDT is the world’s largest stablecoin, with a market capitalization of $183.3 billion as of September 8, 2026. Yet no single regulator oversees USDT worldwide. Its treatment depends on the issuer, user location, distribution platform, and rules of each jurisdiction. CoinGecko data also showed daily USDT trading volume above $48.09 billion on September 8.

    Tether Is Regulated in El Salvador

    Tether has established significant operations in El Salvador, where the National Commission of Digital Assets (CNAD) regulates the country’s digital-asset market. CNAD lists USDT among the stablecoins authorized for trading, with its public-offering authorization dated May 19, 2025.

    Tether’s legal framework also identifies Tether International, S.A. de C.V. as operating under El Salvador’s digital-asset regime. However, authorization there does not automatically give USDT regulatory approval in other countries.

    United States Is Building a Different Framework

    The U.S. regulatory environment changed with the GENIUS Act. The Treasury said its expected effective date is January 18, 2027. From then on, a person generally cannot issue a payment stablecoin in the United States without an appropriate federal or state license.

    Treasury issued proposed implementation rules in August 2026. FinCEN and the Office of Foreign Assets Control have also proposed anti-money-laundering and sanctions-compliance requirements for permitted stablecoin issuers.

    Foreign-issued stablecoins face additional conditions, including requirements connected to compliance with lawful U.S. orders and recognition of comparable foreign regulatory regimes.

    Tether Created a Separate U.S. Stablecoin

    Tether launched USA₮ in January 2026 rather than making USDT its dedicated U.S.-regulated product. USA₮ is issued by Anchorage Digital Bank, N.A., a federally chartered bank supervised by the Office of the Comptroller of the Currency.

    Tether says USDT continues operating globally while progressing toward GENIUS Act compliance. USA₮ and USDT therefore remain separate products despite belonging to the broader Tether ecosystem.

    Europe Operates Under MiCA

    The European Union regulates crypto assets through Markets in Crypto-Assets (MiCA). The final transitional period for crypto-asset service providers expired on July 1, 2026, according to the European Securities and Markets Authority.

    After that date, firms serving EU customers generally need MiCA authorization. Whether a platform can offer USDT depends on the applicable MiCA requirements, the stablecoin’s status, and the platform’s own authorization.

    Why This Matters

    USDT’s regulatory status cannot be reduced to one regulator or license. Users need to consider the issuer, jurisdiction, and platform involved, as reserve, sanctions, licensing, and availability requirements can differ substantially across markets.

    Final Thoughts

    USDT remains a globally used stablecoin, but oversight is increasingly jurisdiction-specific. El Salvador authorizes USDT, while the U.S. and EU are applying separate frameworks. As stablecoin rules mature, regulatory compliance will increasingly determine where and how USDT can be offered.

    Also Read: How Long Does USDT Take to Transfer? TRC20 vs ERC20 Transfer Times, Fees

    FAQs

    1. Who regulates Tether USDT?
      There is no single regulator responsible for USDT worldwide. Oversight depends on where Tether operates, where USDT is offered, and the regulatory framework of each jurisdiction.
    2. Is USDT regulated in El Salvador?
      Yes. El Salvador’s National Commission of Digital Assets (CNAD) lists USDT among the stablecoins authorized for trading under the country’s digital-asset framework.
    3. How will the GENIUS Act affect USDT in the United States?
      The GENIUS Act introduces federal and state licensing requirements for payment stablecoin issuers. Foreign-issued stablecoins also face conditions involving lawful orders, sanctions compliance, and recognition of comparable regulatory regimes.
    4. What is the difference between USDT and USA₮?
      USDT is Tether’s globally used stablecoin, while USA₮ is a separate product launched for the U.S. market. USA₮ is issued by Anchorage Digital Bank under U.S. federal oversight.
    5. How does MiCA affect USDT in Europe?
      MiCA sets licensing, reserve, governance, and compliance requirements for crypto-asset firms serving EU customers. Whether platforms can offer USDT depends on MiCA rules, the token’s status, and each platform’s authorization.
  • Changelly Research Reveals Three Distinct Stablecoin User Types in 2026

    Changelly Research Reveals Three Distinct Stablecoin User Types in 2026

    New data from Changelly, an instant crypto exchange, covering the first half of 2026, challenges the idea that stablecoin adoption is moving in a single direction. Instead of a steady climb toward heavier stablecoin use, the platform’s transaction history points to three separate usage habits that don’t appear to blend into one another over time.

    Three Ways Users Relate to Stablecoins

    Changelly grouped users by how frequently stablecoins appeared in their trading activity, and observed a sharp split among the three groups that emerged:

    • Nearly half of all users made no stablecoin transactions at all during the period.
    • Up to 45% used stablecoins in almost every trade.
    • The remaining ~15% moved freely between stablecoins and other crypto assets.

    This third, smallest group—those switching between asset types—actually trades the most: They transacted as much as 6.2x more than users who never touch stablecoins. In comparison, heavy stablecoin users traded less often but moved more money per trade, with average transaction sizes reaching 2.5x the platform norm.

    “Our data shows there is no longer a single type of stablecoin user. Instead, we’ve identified distinct behavioral patterns that vary by user type and transaction size.” —Daria Morgen, Head of Research at Changelly.

    Low Transaction and High Volume Share

    Even though stablecoins were involved in under 20% of all Changelly transactions, they drove nearly 50% of total trading volume—a gap explained almost entirely by the size of trades rather than their frequency. Stablecoin trades averaged 4.2x the size of non-stablecoin trades on the platform.

    USDT led by a wide margin, appearing in about 14% of transactions but responsible for over 40% of trading volume. USDC came in a distant second, with just over 4% of transactions and roughly 7% of volume. All remaining stablecoins combined for a negligible slice of activity.

    Stablecoins have also worked their way into the platform’s most-used trading routes, appearing in 31% of Changelly’s top ten swap pairs—evidence that they are becoming a mainstream trading tool.

    Streamlining How Users Move Stablecoins

    Because stablecoins already sit inside nearly a third of Changelly’s most-traded pairs, giving users an easy way to shift them across chains has become a priority. Changelly supports this with competitive stablecoin swap rates, including 1:1 pricing on cross-chain exchanges, making it easier for users to move stablecoins across networks.

    Methodology

    The findings are based on anonymized, aggregated transaction data collected by Changelly across web and mobile platforms during H1 2026. Transactions were grouped by the general share of stablecoin activity within overall trading. The study examined broad trends in trading behavior, volume, and asset preference based on Changelly data, not the whole stablecoin market.

    Disclaimer: All data presented is anonymized and generalized. Changelly does not track or disclose personal or identifying user information.

    About Changelly

    Changelly is an instant crypto exchange trusted by over 12 million users worldwide. Founded in 2015, the platform offers secure, intuitive crypto-to-crypto swaps across over 1,200 cryptocurrencies, along with 24/7 live customer support. Changelly also features a built-in smart fiat on-ramp aggregator, giving users access to up to 220 competitive offers from verified providers and enabling seamless purchases of 350+ cryptocurrencies with 20+ global payment methods. Changelly is available on desktop, iOS, and Android.

  • Bitcoin ETFs See $181M Inflow, US Freezes $130M in Iran-Linked USDT, and BitMine Earns $45.7M from ETH Staking

    Bitcoin ETFs See $181M Inflow, US Freezes $130M in Iran-Linked USDT, and BitMine Earns $45.7M from ETH Staking

    The crypto market witnessed several major developments today, including significant Bitcoin ETF inflows, a US government action against Iran-linked USDT wallets, and BitMine’s massive Ethereum staking revenue.

    Bitcoin ETFs Attract $181 Million in Net Inflows

    According to data from SoSoValue, Bitcoin spot ETFs recorded a total net inflow of $181.08 million yesterday. BlackRock’s IBIT led the charge with a daily net inflow of $138.91 million, bringing its historical cumulative net inflow to $60.24 billion. Fidelity’s FBTC followed with $21.07 million, accumulating a total net inflow of $9.93 billion. The combined net asset value of all Bitcoin spot ETFs now stands at $77.96 billion, representing a 6.02% net asset ratio, while the historical cumulative net inflow has reached $51.03 billion.

    US Freezes $130 Million in Iran-Linked USDT Wallets

    On Tuesday, Treasury Secretary Scott Bessent confirmed that the United States has frozen over $130 million worth of cryptocurrency tied to Iran. The action targeted four Tron wallets holding approximately $131 million in Tether (USDT). Blockchain investigator Specter first identified the wallets on-chain, and Bessent later confirmed their connection to the Central Bank of Iran. In a statement shared on X, Bessent reiterated the Treasury Department’s commitment to preventing Iran from using digital assets to support illicit financial activities.

    FTX Allegations Against Justin Sun

    FTX Trading Ltd. has alleged that Justin Sun moved $10 million in Bitcoin from customer accounts at the Poloniex exchange. The claim was detailed in an adversary proceeding court document published on July 14, 2026. FTX is seeking to recover these funds as part of its ongoing bankruptcy proceedings, highlighting the continued efforts to reclaim assets following the exchange’s collapse. The allegations add another layer to the complex legal landscape surrounding FTX.

    Stablecoin Treasury Platform Velocity Raises $38 Million

    Velocity, a stablecoin treasury platform, has raised $38 million in a Series A funding round co-led by Dragonfly and FirstMark. The company plans to expand its infrastructure, enabling companies and financial institutions to use digital assets for cross-border settlement and treasury operations. The new funds will also focus on expanding its banking and payments network, developing new products, and strengthening global regulatory capabilities. Founded in 2025, Velocity develops software that connects stablecoin networks with banking, custody, compliance, and settlement systems, targeting corporate finance teams, payment providers, fintech firms, and financial institutions.

    BitMine Earns $45.7 Million from ETH Staking

    BitMine Immersion Technologies generated $45.7 million from Ethereum staking and validation during the three months ended May 31. This figure represents 98% of the company’s total quarterly revenue of $46.5 million, according to its latest 10-Q filing with the SEC. A year earlier, BitMine reported total quarterly revenue of just $2.05 million, with machine leasing contributing $1.08 million and Bitcoin self-mining generating $813,000. The latest results underscore the company’s dramatic shift toward Ethereum after building one of the world’s largest corporate ETH treasuries.

    FAQs

    1. How much inflow did Bitcoin spot ETFs record?
    Bitcoin spot ETFs recorded total net inflows of $181.08 million. BlackRock’s IBIT led with $138.91 million, while Fidelity’s FBTC followed with $21.07 million.

    2. What happened to the Iran-linked USDT wallets?
    The United States froze four Tron wallets holding around $131 million in USDT. Treasury Secretary Scott Bessent confirmed the wallets were linked to the Central Bank of Iran.

    3. Why is BitMine’s ETH staking revenue important?
    BitMine generated $45.7 million from Ethereum staking and validation during the quarter, representing 98% of its total quarterly revenue, showing a major shift toward Ethereum.

    4. How much did Velocity raise in funding?
    Velocity raised $38 million in a Series A funding round co-led by Dragonfly and FirstMark to expand stablecoin treasury, payments, and settlement infrastructure.

    5. What did FTX allege against Justin Sun?
    FTX alleged that Justin Sun moved $10 million in Bitcoin from customer accounts at Poloniex, as part of FTX’s ongoing bankruptcy-related recovery efforts.

  • Circle Wins $49M Arbitration Case Against Tether-Linked Heka Funds

    Circle Wins $49M Arbitration Case Against Tether-Linked Heka Funds

    Circle has won an arbitration dispute against Heka Funds, defeating a $49 million damages claim linked to a 2023 platform suspension, according to a report. Circle suspected trading patterns that favored Tether’s USDT and removed the fund’s access. The outcome became public on July 14, 2026.

    None of the parties has issued an official statement. Therefore, the report remains the only public account of the dispute and ruling.

    Circle Defeats Claim After Platform Suspension

    Circle operates the USDC stablecoin and controls access to its platform services. In late 2023, the company suspended Heka Funds after reviewing its trading activity. According to the report, the fund’s trading patterns allegedly favored USDT in a targeted manner. Circle viewed the conduct as close to market manipulation.

    The company considered the activity a threat to USDC’s market integrity. It then withdrew the fund’s access to its platform and related services. Heka Funds challenged the suspension through arbitration in 2024. It demanded $49 million for profits it claimed to have lost after losing platform access.

    The fund relied on Circle’s issuance, redemption, and trading channels. Therefore, the suspension reduced the number of routes available for its arbitrage strategy.

    Heka Built its Business Around Stablecoin Arbitrage

    The arbitrator dismissed the damages claim and ruled in Circle’s favor. As a result, Circle did not have to pay the requested amount. The report did not disclose the ruling date or the arbitrator’s detailed reasoning. Arbitration proceedings usually keep financial disputes outside public courtrooms.

    A privately appointed arbitrator decides the case. Both parties must generally follow the ruling and have limited options to challenge it. Heka Funds operates through Heka Funds SICAV p.l.c. in Malta. Its Elysium Global Arbitrage Fund uses a strategy managed by London-based Abraxas Capital Management.

    The fund began operating in late 2018 and focused on stablecoin and Tether arbitrage. It targeted small price differences across exchanges and digital tokens. These strategies depend on large transaction volumes and fast settlement. Losing a major trading partner can reduce available opportunities and lower potential returns.

    Platform Access Shapes Stablecoin Competition

    A 2021 Protos investigation said the fund held up to €540 million, or about $570 million, across USDC and USDT. The investigation also reported cumulative gains above 100% since the fund’s launch. In 2021, the fund recorded about €49 million in annual profit. That amount resembles the later arbitration claim. However, the figures relate to separate matters from different years.

    Access decisions directly affect arbitrage funds since their strategies depend on issuer redemption channels and several trading routes. Circle and Tether lead the global stablecoin market, while USDT holds the larger market value. Circle has traded on the NYSE since June 2025.

    The company uses the ticker CRCL. Its public listing also places its operations under greater market and regulatory scrutiny. Meanwhile, the United States is developing federal stablecoin rules through the GENIUS Act. The proposed framework covers reserves, audits, disclosures, and issuer requirements. No official response has emerged from Circle, Tether, Heka Funds, or Abraxas Capital. The detailed basis for the arbitrator’s ruling therefore remains undisclosed.

    What’s Next?

    Circle defeated Heka Funds’ $49 million damages claim after suspending the fund over trading patterns that allegedly favored USDT. Although the arbitrator backed Circle, the reasoning remains undisclosed. Market participants should watch for official statements that may clarify the case and its impact on stablecoin platform access.

  • WhatsApp Crypto Scam Dupes Gwalior CA of ₹21.06 Crore via Fake USDT Trading Platform

    WhatsApp Crypto Scam Dupes Gwalior CA of ₹21.06 Crore via Fake USDT Trading Platform

    A retired chartered accountant in Gwalior has lost a staggering ₹21.06 crore in a sophisticated cryptocurrency scam that began with a single WhatsApp message. The Gwalior State Cyber Cell is now investigating what officials describe as one of the largest crypto frauds ever recorded in the state.

    How the Scam Unfolded

    The trouble started in December 2025 when a woman calling herself ‘Divya’ contacted the 70-year-old victim on WhatsApp. Posing as an investment adviser, she promised high returns through USDT crypto trading. To build trust, she encouraged small initial investments and delivered the promised returns. Over the following months, the victim poured in more money as the trading app showed his profits climbing—at one point displaying holdings worth over ₹33 crore.

    When he attempted to withdraw the funds, the scammers invented new excuses, demanding taxes, risk charges, and additional fees. The money never materialized, and the victim realized he had been cheated.

    Money Laundered Through Thousands of Accounts

    Police investigations revealed that the stolen ₹21.06 crore passed through a four-layer network of bank accounts. More than 20,000 transactions were used to move the funds across multiple states, likely using money mules to obscure the trail. Investigators have so far frozen about ₹2 crore and are working to trace the remainder, identify the perpetrators, and track the IP addresses linked to the fake app and WhatsApp accounts.

    Growing Threat of Crypto Scams

    This case highlights how far crypto scams have evolved. Fraudsters now employ realistic-looking apps, early profit payouts, and trusted platforms like WhatsApp to lure victims before vanishing with their savings. Experts urge investors to verify the credentials of any investment adviser and to be wary of schemes promising unusually high returns.

  • Thailand Intensifies Monitoring of Large USDT Transactions Amid Surging Stablecoin Demand

    Thailand Intensifies Monitoring of Large USDT Transactions Amid Surging Stablecoin Demand

    Thailand’s central bank is joining forces with the Securities and Exchange Commission to tighten oversight of large Tether (USDT) transfers, responding to a sharp rise in stablecoin adoption worldwide. The move targets potential gray-economy flows as businesses increasingly turn to crypto for everyday payments.

    Stablecoin Demand Expands Across Global Markets

    Market data shows USDT usage reached 35.1% by July 2026, surpassing the 29.0% recorded in the same period of 2021 and far exceeding 2024 levels. This shift reflects growing investor preference for stability over speculative assets.

    Blockchain activity further confirms the trend: ERC-20 stablecoin addresses have climbed sharply since 2025, with daily active addresses ranging between 400,000 and 700,000 across supported networks.

    Corporate adoption is also accelerating. Visa, Mastercard, PayPal and Stripe now integrate stablecoins into cross-border payment systems, enabling businesses to settle transactions more efficiently. The stablecoin market has grown to nearly $312 billion, signaling demand that extends beyond crypto-native users into mainstream commercial activity.

    Thailand Targets USDT in Gray Economy Crackdown

    The Bank of Thailand will work closely with the Securities and Exchange Commission to monitor large stablecoin transfers, foreign exchange transactions and high-value cash movements. Authorities aim to reduce activity linked to the country’s gray economy, which operates outside formal regulatory systems and often facilitates money laundering, tax evasion and other financial crimes.

    USDT remains a primary focus as the world’s largest stablecoin by market capitalization. Its cross-border accessibility and widespread use make it attractive for remittances, trading and value storage, but regulators believe those same features allow significant fund transfers to bypass traditional banking oversight.

    New Reporting Rules Increase Compliance Requirements

    Thailand introduced cryptocurrency regulations in 2018, but stablecoins have largely remained outside direct regulatory attention until now. Under the new initiative, crypto exchanges and financial institutions must report large USDT transfers and suspicious transaction patterns. Authorities will also monitor high-value cash deposits, withdrawals and qualifying foreign exchange transactions.

    Consequently, businesses and individuals using USDT in Thailand will face stronger transparency requirements. Exchanges may strengthen know-your-customer procedures and transaction reporting standards. The approach mirrors similar regulatory developments in the United States, Europe and Japan.

    Thailand has previously raised concerns about the gray economy’s effect on tax revenue and financial stability. If the monitoring program proves effective, neighboring Southeast Asian countries may consider adopting similar measures as stablecoin use continues expanding across regional payment networks.