Tether Freezes $225 Million in USDT Amid International Crime Syndicate Probe

The Department of Justice Freezes $225 Million in USDT Linked to International Crime Syndicate

Tether, the organization behind USDT, has taken the initiative to voluntarily freeze over $200 million in stablecoins to support the U.S. Department of Justice (DOJ).

The frozen funds are associated with certain Southeast Asian wallets allegedly connected to “pig-butchering” romance scams. These scams involve bad actors forming romantic relationships with victims online to gain their trust and persuade them to invest in cryptocurrency platforms controlled by the scammers. Once the victim invests a significant amount of money, the con artist disappears with the funds.

The victims, referred to as “pigs” by the fraudsters, are lured into believing they are in a close relationship through elaborate storylines.

Tether and OKX are joining forces to assist the DOJ by freezing the funds of wallets connected to an international human trafficking syndicate behind the alleged scams.

Tether CEO Paolo Ardoino emphasizes their dedication to fostering a secure environment and leveraging technology and relationships to proactively address illicit activities in the industry.

All the frozen funds were held in external self-custodied wallets, according to the announcement.

Hot Take: Tether and OKX Collaborate to Freeze $225 Million in USDT Funds Linked to Romance Scams

The recent move by Tether and OKX to freeze $225 million in USDT linked to romance scams highlights the industry’s commitment to combating illicit activities and upholding integrity in the crypto space. The voluntary action to assist the Department of Justice underscores the importance of collaboration and the use of technology to address fraudulent activities. It also serves as a reminder of the potential risks associated with cryptocurrency investments and the importance of due diligence when participating in digital asset platforms.

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