Tether Collaborates with US Department of Justice and OKX to Freeze $225 Million of Stolen USDT
Stablecoin issuer Tether has frozen $225 million worth of stolen USDT following a collaboration with the United States Department of Justice and crypto exchange OKX. The freezing of the USDT was done to counter a human trafficking syndicate operating in Southeast Asia.
Largest-Ever Freeze of Stablecoins
The investigation by the Department of Justice, which lasted for months, used blockchain analysis tools provided by Chainalysis. This led to the freezing of the USDT, marking the largest-ever freeze of stablecoins. Tether froze $225 million worth of USDT across 37 wallets, with most of the tokens previously transferred to OKX, which also participated in the operation.
“Tether froze ~225M $USDT (37 wallets) linked to a human trafficking group 1 hour ago. These wallets had been moving $USDT before being frozen, with most of the $USDT being transferred to #OKX.”
Crypto and Law Enforcement Collaboration
This collaboration between Tether, OKX, and law enforcement agencies highlights the importance of working together to prevent criminal use of digital assets. The transparency enabled by blockchains serves as a deterrent for illicit activities and sets a precedent for future collaborations. Paolo Ardoino, CEO of Tether, emphasized their commitment to fostering a secure environment through proactive engagement with global law enforcement agencies.
“Through proactive engagement with global law enforcement agencies and our commitment to transparency, Tether aims to set a new standard for safety within the crypto space… We believe in leveraging technology and relationships…to proactively address illicit activities and uphold the highest standards of integrity in the industry.”
OKX Chief Innovation Officer Jason Lau also expressed their dedication to contributing to future collaborations between crypto companies and law enforcement.
“Collaborating with industry stakeholders, including law enforcement agencies, is a key tenet of our approach… At OKX, we will continue to contribute to these initiatives on a proactive basis.”
Hot Take: Tether Freezes $225 Million of Stolen USDT in Collaboration with Law Enforcement and Crypto Exchange OKX
Tether’s freezing of $225 million worth of stolen USDT in collaboration with the US Department of Justice and OKX demonstrates the potential for cooperation between crypto companies and law enforcement. By using blockchain analysis tools, the investigation successfully identified illicit funds linked to a human trafficking group. This significant freeze highlights the importance of transparency and integrity within the crypto space. Moving forward, this collaboration sets a precedent for future efforts to prevent criminal activities involving digital assets.
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