DOJ Investigates Romance Scammers as Tether Freezes $225 Million USDT

DOJ Investigates Romance Scammers as Tether Freezes $225 Million USDT

Tether Freezes $225M in USDT as Part of DOJ Investigation

Stablecoin issuer Tether has frozen approximately $225 million worth of USDT as part of a United States Department of Justice investigation into a Southeast Asian human trafficking syndicate. Tether announced on Nov. 20 that it had worked with the DOJ and crypto exchange OKX to freeze $225 million worth of USDT in “external self-custodied wallets.” The firm reported that the illicit funds were used by a crime syndicate responsible for a “pig butchering” romance scam.

According to Tether, the USDT freezing followed a “months-long investigative effort” into the location of the funds. The stablecoin issuer said it would work with U.S. authorities to unfreeze any “lawful” wallets that may have been seized as part of the effort.

Tether has previously worked with global law enforcement agencies to freeze assets allegedly linked to criminal syndicates. Unlike cryptocurrencies such as Bitcoin, stablecoins like USDT are more likely to be issued by a single authority, allowing issuers to freeze funds and halt transactions in response to law enforcement requests.

Response to Law Enforcement

Crypto moving through exchanges is sometimes subject to the same treatment. Binance, for example, restricted account access to $1 million in crypto for a Tezos tool contributor following a request from authorities. Similarly, Binance froze accounts linked to Hamas militants in October 2023 in response to Israeli law enforcement.

Hot Take

Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

It is essential to recognize the control that issuers of stablecoins like Tether have over their funds and transactions. Working closely with law enforcement agencies, as Tether does, can help maintain the integrity and security of the crypto industry and prevent criminal activities.

DOJ Investigates Romance Scammers as Tether Freezes $225 Million USDT
Author – Contributor at | Website

Coinan Porter stands as a notable crypto analyst, accomplished researcher, and adept editor, carving a significant niche in the realm of cryptocurrency. As a skilled crypto analyst and researcher, Coinan’s insights delve deep into the intricacies of digital assets, resonating with a wide audience. His analytical prowess is complemented by his editorial finesse, allowing him to transform complex crypto information into digestible formats. Coinan’s contributions serve as a valuable resource for both seasoned enthusiasts and newcomers, guiding them through the dynamic landscape of cryptocurrencies with well-researched perspectives. With meticulous attention to detail, he empowers informed decision-making in the ever-evolving crypto sphere.

Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!

Latest Crypto News