The stablecoin giant froze over $12.3 million worth of funds, pointing to potential illicit activity or AML violations.

Tether, issuer of the world’s largest stablecoin, USDt, has frozen over $12.3 million of digital assets on the Tron Network, continuing its clampdown on illicit activity in the crypto space.

Tether froze the USDt 

 at 9:15 am UTC Sunday on Tron, blockchain data from Tronscan showed.

While Tether has not issued a public statement, the freeze may stem from concerns over potential sanctions violations or Anti-Money Laundering (AML) risks.

“Tether enforces a strict wallet-freezing policy to combat money laundering, nuclear proliferation and terrorist financing and is also aligned with the OFAC Specially Designated Nationals (SDN) List,” Tether wrote in a March 7 blog post.

The policy is aligned with the US Treasury’s Office of Foreign Assets Control (OFAC) sanctions list.

Cointelegraph reached out to Tether for comment on the fund freeze but had not received a response by publication time.