Tether Is Facing Pressure From All Sides

Tether is once again in the spotlight. Over the past week, the company reportedly froze approximately $514 million worth of USDT across 370 addresses as part of its collaboration with international law enforcement. While Tether has long worked with authorities to freeze funds linked to alleged criminal activity, the scale of this latest move is drawing attention.

Meanwhile, Thai businesspeople have initiated legal action against Tether regarding $42.4 million in frozen USDT. These funds are reportedly linked to a U.S. investigation into alleged scams, creating a new legal headache for the stablecoin issuer.
There is also the situation involving Orionx, a Chilean cryptocurrency exchange backed by Tether in 2025.
Orionx has since gone bankrupt after an audit revealed that nearly $7 million in client funds had been transferred to external wallets between 2018 and 2021. Crucially, these transfers took place years before Tether became an investor. Criminal complaints have been filed against Orionx's co-founders, while more than 100,000 users are now awaiting answers.
And as if that weren't enough, Tether could soon face a new type of competition.
Twenty-one major banks are reportedly preparing to launch a regulated stablecoin, potentially bringing traditional financial institutions into direct competition with established players like Tether.
None of these events necessarily mean Tether is in trouble, but they do highlight the intense scrutiny and growing competition the company is facing.
The stablecoin race is heating up, and Tether finds itself right in the middle of it.