Tether Freezes $225M in USDT Linked to International Human Trafficking Syndicate Under Investigation by DOJ
In a significant move to support law enforcement efforts, Tether has frozen $225 million of its stablecoins. This action follows an investigation by the U.S. Department of Justice (DOJ) into a human trafficking syndicate in Southeast Asia. The investigation, assisted by blockchain analysis firm Chainalysis, led to the discovery of the syndicate’s involvement in the infamous ‘pig butchering’ scam, which inflicted significant financial losses on U.S. citizens last year.
Tether’s Response to DOJ Investigation
In a press release, Tether stated that the frozen assets were held in self-custody wallets separate from Tether’s client funds. Paolo Ardoino, the CEO of Tether, emphasized the company’s commitment to establishing new security standards in the cryptocurrency space.
The Largest Stablecoin Freeze to Date
This freeze represents the largest of its kind in stablecoin history, according to Tether’s press release. Paolo Ardoino, the CEO of Tether, highlighted the company’s commitment to establishing new security standards in the cryptocurrency space.
This is not the first time that Tether has taken action against illicit activities. Last month, Tether froze 32 crypto addresses linked to terrorism and warfare activities in Ukraine and Israel.