Joint Freeze of USDT Tokens
Tether and Okx recently collaborated with the U.S. Department of Justice and froze $225 million in USDT tokens following a joint investigation. The joint investigation used analytics tools from blockchain analysis firm Chainalysis. The action by Tether represents the largest-ever freeze of USDT in history. After months of investigation, Tether, Okx, and law enforcement agencies identified the locations of the illicit funds. According to an analysis by Lookonchain, Tether froze 37 wallets linked to a human trafficking group on Monday.
Frozen Wallets on the Secondary Market
Tether claimed that the frozen wallets are on the secondary market and are not associated with Tether’s customers. To the extent lawful wallets were captured by this operation, Tether will work quickly with law enforcement and the owners of those wallets to unfreeze them. In October, Tether froze 32 addresses linked to suspicious operations in Israel and Ukraine.
Rise of Crypto Scams
Pig butchering crypto scams have been on the rise globally. In April this year, the U.S. Department of Justice seized cryptocurrency worth $112 million in a pig butchering scam crackdown. Last week, the Internal Revenue Service (IRS) warned that U.S. taxpayers are currently the most targeted population for pig butchering schemes.
Hot Take: The Impact of the USDT Freeze
Tether and Okx are taking a proactive stance in the fight against illicit activities and scams. Their collaboration with the U.S. Department of Justice led to the freezing of $225 million in USDT tokens, representing a significant effort to curb human trafficking and crypto scams. The rising number of these illicit activities highlights the importance of such preventative measures in strengthening the overall security and integrity of the cryptocurrency ecosystem.
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