Stablecoin issuer Tether has frozen 225 million USDT associated with an international human trafficking and money laundering operation in Southeast Asia. The freeze, carried out in collaboration with OKX and the United States Department of Justice (DOJ), represents the largest freeze ever carried out by Tether.
Stablecoin giant freezes $225 million USDT
cryptokoin.com As you follow from , criminal organizations also use crypto technology to conduct their business. However, leading companies in the industry are cooperating with authorities to thwart these bad actors. In the latest incident, the stablecoin giant leveraged Blockchain analysis from Chainalysis to detect and track illicit funds. Meanwhile, Tether collaborated with cryptocurrency exchange OKX for the freeze. Additionally, law enforcement agencies, including the DOJ and the Secret Service, also participated in this action. Regarding the development, Tether shared the following from its official X account:
Following investigations by Tether, OKX, and the US Department of Justice, Tether voluntarily froze 225 million USDT linked to the international criminal organization.
Following Investigations by Tether, OKX, and the U.S. Department of Justice, Tether Voluntarily Freezes 225M in Stolen USDT Linked to International Crime Syndicate https://t.co/yrofwNtK5s
— Tether (@Tether_to) November 20, 2023
The targeted operation involved an international syndicate running “pork butchering” romance scams, a fraudulent scheme to lure victims into fake relationships and eventually steal their money. According to authorities, losses from these scams amount to billions of dollars every year.
Tether and OKX officials made statements on the subject
The stablecoin giant and its partners started by analyzing activity on the blockchain. As a result, he identified wallets associated with the criminal group’s money laundering infrastructure. He then voluntarily passed this information on to law enforcement. This enabled the DOJ to request a formal freeze. Tether CEO Paolo Ardoino made the following statement on this issue:
Through proactive engagement with global law enforcement and our commitment to transparency, Tether aims to set a new standard for security in the crypto space.
OKX Chief Innovation Officer Jason Lau also made a similar statement. Lau emphasized the importance of collaboration between crypto firms and regulators to promote integrity and security. The collaborative investigation with the stablecoin issuer highlights how transparency of blockchain transactions can help deter and prevent illicit finance.
Crypto industry supports compliance efforts
Ultimately, the stablecoin giant and its partners disrupted a massive human trafficking operation by freezing illicit funds. This incident also underlined the potential of blockchain analysis to improve regulatory oversight. The company is committed to supporting crypto industry compliance efforts by collaborating with global authorities.
