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Tether Freezes $213 Million in USDT Tied to Gurhan Kiziloz in Brazil Tax Dispute

The civil case tests whether Brazil can apply 2024 gambling and token rules to conduct from 2021 to 2024.

Overview

  • Tether froze $213 million across 48 USDT wallets tied to iGaming founder Gurhan Kiziloz on Thursday at the request of Brazilian authorities.
  • Regulators say the claim targets taxes from unlicensed gambling and unregistered token sales during 2021 to 2024, before Brazil set clear licensing and registration rules.
  • No criminal charges have been filed, and the case is proceeding in Brazil’s civil courts where judges will decide how far newer rules can reach backward.
  • The 48-wallet lock required mapping and linking each address to the disputed period, indicating close coordination between Tether and Brazilian tax investigators.
  • On-chain analysis cited in the reports shows Tether has frozen more than $5.1 billion to date, including over $500 million in the past 30 days, which highlights how a stablecoin issuer can cut off access to funds within minutes.