Brazil court action prompts Tether to freeze $213M in USDT linked to iGaming entrepreneur amid tax probe

Tether has frozen $213 million in USDT held across 48 wallets linked to entrepreneur Gurhan Kiziloz following action tied to a Brazilian court ruling, with the move reported as coordinated with Brazilian authorities addressing an alleged gambling tax dispute and related inquiries into token sales ^{[1] [2] [3]}.

Reports say the freeze targets activity from 2021 to 2024 and was carried out by Tether Operations Ltd. at the request of Brazilian regulators; those reports note the case is currently treated as a civil tax dispute and that criminal charges have not been publicly filed while legal discussions continue between Kiziloz’s representatives and the government ^{[1] [2]}.

Media coverage describes the action as one of the larger single‑target stablecoin freezes on record and places it within broader enforcement efforts where stablecoin issuers have immobilized funds in response to official requests ^{[1] [4]}.

Published accounts emphasize that the allegations concern unlicensed iGaming operations and token sales that occurred before Brazil implemented binding rules for those activities, and they note that details remain subject to ongoing investigation and legal process ^{[5] [4]}.