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CryptocurrencyNewsScamsStablecoinTether (USDT)

Tether Freezes $225 Million in USDT Linked to Scammers

Tether authorities have frozen $225 million worth of USDT stablecoins linked with scammers. The firm took the action while working with investigators from the Department of Justice. On this account, Tether reported that the firm has proceeded to freeze a considerable amount of USDT coins that were linked with scammers hailing from Southeast-Asia who were running romance scams.

Pig Butchering Scam

This type of scam is called pig-butchering and involves creating fake profiles to reach out to potential victims through social media accounts to defraud victims. Tether is working with officials of DOJ on blocking incidents of human trafficking.  

Tether reported working with DOJ officials and OKX exchange platform to halt $225 million in USDT reserves stored in self-custodial wallets. Scammers in question were trying to convince victims to invest in their businesses to con them.

Tether’s Investigation

Tether has reported that the firm has conducted a month long investigation for tracking the location of the scammers working with DOJ, OKX, and law enforcement agencies. At the same time, stablecoin issuer also claimed that will release the lawful wallets during collaboration with the US regulators.

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These wallets may have been seized as part of the investigation process. Tether has retained that it is working with regulators around the globe to ensure transparency.

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Newly appointed Tether CEO, Paolo Ardoino said that the stablecoin issuer has joined forces with Department of Justice as part of its plan to create a safe environment for investors. He noted that the firm is working on incorporating the latest technologies and networking with crypto firms such as OKX exchange.

These efforts are directed towards curbing illegal activities and maintain the highest industry standards. Tether is also working with other international law enforcement agencies to crack down against criminal actors.

Tether is also Working with Israel and Ukraine to Tackle Crypto Crimes

Tether is also working in tandem with law enforcement agencies hailing from Ukraine and Tether. The firm worked with the National Bureau of Counter Terror Financing to halt around $873,000 worth of USDT that were traced back to terrorists operating in Israel and Ukraine.

The frozen USDT reserves valued at $225 million recently are the largest fund in the history of the firm. Stablecoins like Tether are issued through a single authority therefore they are considered safer investment.

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At the same time, it is possible for investors to freeze funds on account of law enforcement intervention. In the same manner, USDT traded on a crypto trading platform can be controlled in the same manner.

In August, 2022 Binance reported that it halted $1 million in cryptocurrencies based on a request from law enforcement authorities. Furthermore, Binance also seized accounts that were linked with Hamas militants in October, 2023 based on a request generated from Israeli law enforcement agencies.


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Hassan Mehmood (Saudi Arabia)

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

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