Bitrabo Editorial
Tether, the organization behind the biggest stablecoin by market capitalization, has frozen around $5.2 million USDT to combat illegal financial activities. This move was made to prevent phishing operations.
Freezing of Funds
The affected Ethereum addresses were labeled as “USDT Banned Address,” hinting at their involvement in potential money laundering activities often linked with phishing groups. These groups tend to transfer their unlawfully acquired funds to other platforms and use cryptocurrency mixers to conceal the source of the funds.
This recent freeze by Tether is part of a broader initiative to disrupt such illicit actions by cutting off access to essential financial resources. In a similar vein, Tether had previously collaborated with OKX to freeze over 225 million USDT across 37 wallets connected to a human trafficking network.
Tether’s CEO, Paolo Ardoino, reiterated the company’s commitment to supporting law enforcement efforts and helping victims recover from criminal activities. Tether remains resolute in its zero-tolerance policy towards the misuse of USDT or any cryptocurrency for illegal purposes, pledging to collaborate with global law enforcement to maintain the integrity of the digital asset ecosystem.
Tether’s Efforts Against Illicit Crypto Activities
Despite Tether’s endeavors, its widespread use in the cryptocurrency market has made it a common tool in illicit transactions. A report by TRM Labs revealed that Tether contributed to $19.3 billion in illegal transaction volume in 2023, down from $24.7 billion the previous year.
The Tron blockchain, where a substantial portion of stablecoin issuers operates, has become a preferred choice for terrorist financing entities. The rise in terror-financing-related addresses receiving USDT on this blockchain indicates the challenges in controlling such flows.
Amidst global regulatory scrutiny, Tether has faced criticism as being used by money launderers and fraudsters in Southeast Asia, as highlighted in a report by the Financial Times. Ardoino pushed back against the report, claiming it lacked understanding of the facts and showed bias towards traditional finance.
Image sources: Unsplash (Featured image), TradingView (Chart)