Tether Freezes $225 Million in USDT Tokens
The stablecoin company Tether has voluntarily frozen $225 million worth of USDT tokens held in external self-custody wallets. The funds were connected to an international criminal syndicate involved in human trafficking and a global “pig butchering” scheme, as per the company’s press release on November 20.
“Pig butchering” refers to a scam where the perpetrator builds a relationship with a victim before manipulating them emotionally to send money, cryptocurrencies, or participate in fraudulent investment schemes.
The decision to freeze the USDT comes after a thorough investigation involving Tether, OKX, and the U.S. Department of Justice (DOJ).
Tether’s Commitment to Stopping Crypto-Related Crime
CEO Paolo Ardoino emphasized that the proactive approach by Tether and OKX, along with the voluntary freezing of stolen tokens, demonstrates how blockchain transparency can help detect and prevent illicit activity. He stated that through proactive engagement with law enforcement agencies, Tether aims to set a new standard for safety within the crypto space.
“We believe in leveraging technology and relationships, such as our collaboration with OKX, to proactively address illicit activities and uphold the highest standards of integrity in the industry,” Ardoino reaffirmed.
Tether has previously frozen funds linked to illicit activities and has worked with multiple agencies globally. The recent move aligns with other institutions taking an active role in preventing crypto-related crime.
Hot Take: Tackling Crypto Scams
With Tether’s proactive approach and collaboration with law enforcement agencies, they are setting a new standard for safety within the crypto space. This aligns with recent efforts by major institutions to protect customers from crypto scams and fraudulent activities.
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