Tether Freezes USDT Worth $225M Linked to Human Trafficking Group

With the advancement in the digital sector crypto has become a tool for conducting unlawful activities forcing industrial players to take decisive action to protect the digital industry from collapsing. As part of the pivotal role to shield the crypto industry from involvement in criminal activities, Tether has freezed million dollars linked to human trafficking.

 In a recent report, the leading stablecoin issuer, Tether, froze $225 million tied to a human trafficking group. This preventive measure aim at assisting the Department of Justice (DOJ) to conduct a thorough investigation on the incident to prosecute the criminals. 

Tether Report Pig Butchering Case to DOJ

A statement from a Tether spokesperson revealed that several digital wallets holding measurable amounts of USDT belonged to a human trafficking group based in Southeastern Asia. After analyzing the transaction history involving the self-custodial digital wallet, Tether noted that the suspicious group orchestrated a “pig butchering scam.”

 The stablecoin issuer observed that the suspects created fake accounts on different social media platforms to deceive innocent investors to venture into a bogus investment. The suspect develops various tactics, such as establishing a relationship with investors to convince them on the benefits of investing in crypto investment. 

Last year, a pig butchering scam exposed US residents to losing assets worth $3.3 billion. A report from the Federal Bureau of Investigation (FBI) revealed that the pig butchering scam was conducted by Asian illicit groups targeting innocent crypto investors.

 From their findings, the Tether team noted that the suspects used 37 digital wallets to transfer funds to the Seychell-based crypto exchange OKX. Shortly after discovering the incident, Tether informed the OKX about the matter. 

The two contacted Chainalysis to assist in tracking the movement of the funds. After extensively investigating the movement of funds, Tether and OKX reported the matter to the relevant authorities.  

Rise of Crypto Scams

A statement from the chief executive officer of Tether Paolo Ardoino confirmed that after reporting the matter, the US Secret Service advised the exchange to suspend the account linked to the suspicious group immediately. 

The CEO admitted that Tether worked closely with the DOJ during the initial investigation phase. Ardoino was pleased to announce that the collaboration with the DOJ demonstrated Tether’s commitment to creating a secure environment to boost the development of the crypto industry. 

This impressive move portrayed Tether’s devotion to combat crime by implementing new safety standard that restricts unlawful activities.Lately, Tether has positioned itself among the crypto exchange, fighting for a secure crypto industry. 

Last month, Tether worked closely with Israeli law enforcement units to freeze 32 crypto addresses tied to the Hamas and Ukraine illicit groups. The collaboration with the Israeli law enforcers aimed at weakening the financial stronghold of Hamas by restricting the flow of funds.

Tether Vows to Collaborate With Law Enforcers to Address Crypto Crime

In an earlier report, Ardoino affirmed that Tether would remain at the forefront in promoting the use of responsible blockchain. The CEO vowed to work with global law enforcers to stand against cybercrime. 

The executive stated that Tether will remain committed to restoring financial integrity and promoting international security. In 2022, Tether assisted the US law enforcers in freezing USDT worth $46 million linked to the FTX.

 Despite Tether’s pivotal responsibility in safeguarding the crypto industry by bringing down criminals, the stablecoin issuer has faced multiple charges with US law enforcement units. 

A few years ago, Tether was described as a controversial stablecoin issuer after it failed to prove that the US dollar ultimately backed USDT. The market regulators noted that Tether provided fake documents concerning its dollar-backed stablecoin.

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