Tether Freezes $225 mn In USDT
Stablecoin issuer Tether has frozen $225 million worth of stolen USDT, linked to a human trafficking syndicate in Southeast Asia, following a collaboration with the US Department of Justice and crypto exchange OKX.
The freeze marks the largest-ever freeze of stablecoins and was done to counter the trafficking group behind a global “pig butchering” scam.
Tether froze $225 million worth of USDT across 37 wallets, with most of the tokens transferred to OKX. The US Department of Justice, OKX, and law enforcement agencies were alerted to the location of illicit funds through blockchain analysis. A freeze request was made by the US Secret Service and a voluntary freeze by Tether.
The frozen wallets are currently on the secondary market and are not associated with Tether’s users. The development highlights the importance of collaboration between crypto companies and law enforcement to prevent using digital assets for criminal purposes.
The transparency enabled by blockchains can act as a deterrent for illicit activities, setting a precedent for future collaboration between law enforcement and crypto companies.
(With inputs from Shikha Singh)
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