Tether has frozen a staggering $5 million across three wallets, sparking renewed debate about the centralization risks inherent in stablecoins like USDT. While Tether cites efforts to combat financial crime through its T3 Financial Crime Unit (T3 FCU), this latest action raises questions about the stability and transparency of these increasingly popular crypto assets. The news comes as S&P Global downgraded USDT’s rating, citing concerns over reserve transparency. 2025 marks the year that Tether’s T3 FCU launched, a collaboration with TRON and TRM Labs to combat crypto-related crime globally. This has so far yielded significant results, with over $300 million in criminal assets frozen across multiple jurisdictions.