Global Romance Scam Linked to $225 Million in USDT Frozen by Tether

Global Romance Scam Linked to $225 Million in USDT Frozen by Tether


Tether Freezes $225 Million in Connection with Pig Butchering Scam

Tether, the world’s largest issuer of stablecoins, announced on Monday that it had frozen $225 million worth of USDT tokens connected to a global romance scam known as the “pig butchering” scheme.

The Largest Freeze in Tether’s History

This action marked the largest freeze in Tether’s history and was applied to “external self-custodied wallets.”

Collaboration with OKX and the U.S. Department of Justice

Following a joint investigation with crypto exchange OKX and the U.S. Department of Justice, Tether utilized tools provided by blockchain analysis firm Chainalysis to identify and freeze the illicitly obtained funds.

Compliance with Law Enforcement Request

After receiving alerts about the movement of illicit funds on-chain, the U.S. Secret Service requested the freeze, to which Tether “voluntarily” and “proactively” complied.

Addressing Illicit Activities

Tether CEO Paolo Ardoino emphasized the company’s commitment to leveraging technology and relationships to proactively address illicit activities and maintain industry integrity.

Previous Frozen Funds and Market Cap

Tether had previously frozen funds linked to terrorism, a phishing scam, and an exploit. The company is facing political pressure to improve its anti-money laundering measures amidst its soaring market cap, which has now reached over $87 billion.

Hot Take: Tether’s Ongoing Battle Against Financial Crime

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Tether’s proactive steps to freeze illicitly obtained funds demonstrate the company’s commitment to upholding industry standards. As Tether’s market cap continues to soar, the pressure to address flaws in its anti-money laundering measures grows, reflecting the need for stringent regulatory compliance within the crypto market.

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