Tether (USDT) Freezes $225 Million in Connection with Pig Butchering Scam
Tether (USDT), the world’s largest issuer of stablecoins, posted on Monday that it had frozen $225 Million worth of USDT tokens connected to a worldwide 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 United States Department of Justice
Following a joint investigation with cryptocurrency exchange OKX and the United States Department of Justice, Tether (USDT) 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 United States Secret Service requested the freeze, to which Tether (USDT) “voluntarily” and “proactively” complied.
Addressing Illicit Activities
Tether (USDT) 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 (USDT) 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
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 cryptocurrency market.
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