More than $213 million in USDT linked to Gurhan Kiziloz has been frozen after a Brazilian court dispute tied to gambling operations and cryptocurrency sales taxes dating back to 2021–2024.
The freeze, carried out by Tether, reportedly affects 48 wallets connected to entities associated with Kiziloz. According to reports surrounding the matter, Brazilian authorities argued that gambling-related services targeting users inside the country, along with token sales tied to the business, generated taxable revenue during a period when Brazil’s regulatory structure for both industries was still being developed.
Authorities reportedly maintained that even before the country finalized its current licensing and oversight framework, the revenue generated from those activities still fell within Brazil’s taxable jurisdiction.
However, no criminal charges have been filed, and the matter remains a civil tax dispute between Gurhan Kiziloz and Brazilian authorities.
The dispute traces back to a period when many offshore gambling platforms and crypto-related businesses continued serving Brazilian users through international entities while regulation remained fragmented and unclear. Over the last several years, Brazil has accelerated efforts to formalize both sectors under stricter taxation, licensing, and compliance systems.
According to reports, Kiziloz and his legal team are appealing against the government’s tax claims tied to the 2021–2024 period.
The case is also drawing attention because of the role stablecoin issuers now play in enforcement actions involving blockchain-based assets. Although cryptocurrencies are often promoted as decentralized financial systems, centralized issuers such as Tether retain the technical ability to freeze wallets and restrict transfers tied to court rulings and legal orders.
As regulators around the world tighten oversight around offshore gambling operations, token sales, and crypto-related revenue streams, cases involving historical activity conducted during earlier regulatory gray areas are becoming increasingly common.
We reached out to Gurhan Kiziloz for comment regarding the frozen assets and legal proceedings, but have not received any response so far.
