Tether, the issuer of the largest stablecoin by market cap, USDT, has announced that it has frozen $225 million worth of USDT in cooperation with the U.S. Department of Justice (DOJ) and crypto exchange OKX. The frozen funds were linked to a Southeast Asian crime syndicate that used a “pig butchering” romance scam to defraud unsuspecting victims.
On Nov 20 announcement, Tether said its partnership with the Department of Justice (DOJ) and crypto exchange OKX to freeze $225 million in USDT. These funds, housed in “external self-custodied wallets,” were tied to a fraudulent group.
The company disclosed that the unlawful funds were employed by a criminal syndicate engaged in a “pig butchering” romance scam. In this method, malicious actors seek to establish online relationships with unsuspecting individuals, often persuading them to invest in seemingly legitimate businesses before deceiving them.
Tether reports that the move to halt USDT came from a thorough “months-long probe” seeking to track the money. The joint mission included Tether, OKX, the Department of Justice (DOJ), and assorted U.S. law enforcement units. The stablecoin issuer pledged its devotion to teaming with U.S. officials to unfreeze any “lawful” wallets that might have been taken during this coordinated endeavor.
Tether’s CEO, Paolo Ardoino, stated the company’s promise to set a top-notch security standard in the cryptocurrency field. They plan to achieve this by working closely with international official enforcement groups and being open and clear.
Our recent partnership with the Department of Justice demonstrates our commitment to creating a safe environment. It’s essential to use connections and technology, like our partnership with OKX, to stop illegal activity in its tracks and maintain the most significant levels of integrity in the business.
Tether Commitment To Security & Transparency
However, Tether has joined forces with worldwide law enforcement before to stop criminals. In the past, when they teamed up with Israel’s Anti-Terror Financing Bureau, They froze around $873,000 USDT, suspected of financing terror in Israel and Ukraine. Now, they’ve frozen a massive $225 million. It’s their most significant asset freezing move ever.
Many cryptocurrencies, like Bitcoin, give complete control to whoever has the private keys. Today, Bitcoin is worth $37,470. However, stablecoins like USDT are different. Because of this, the authority can stop transactions and freeze funds if law enforcement asks them to.
In addition, crypto moving through exchanges is sometimes subject to the same treatment. In Aug 2022, Binance revealed it had restricted access to $1 million in crypto assets for a Tezos tool collaborator, obeying a request from the authorities. Furthermore, in Oct 2023, Binance paused accounts linked to Hamas fighters reacting to a plea from Israeli police.
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