Tether Freezes $225 Million in Unprecedented Move Against Human Trafficking Scam

In a groundbreaking move against criminal activities in the crypto space, stablecoin issuer Tether has frozen a record-breaking $225 million worth of USDT (Tether’s native cryptocurrency). 

This unprecedented action comes in the wake of a months-long investigation conducted in collaboration with the United States Department of Justice (DOJ) and cryptocurrency exchange OKX.

Tether’s decision to freeze the funds is linked to an extensive investigation into an international human trafficking syndicate operating in Southeast Asia. 

The criminal group was found to be executing a sophisticated “pig butchering” romance scam. In this elaborate scheme, individuals were lured into online relationships and convinced to invest in seemingly legitimate ventures, only to be defrauded.

Tether CEO Paolo Ardoino emphasized the company’s commitment to transparency and cooperation 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,”

The move marks one of the most substantial interventions by a cryptocurrency issuer against illicit activities.

Largest-Ever Stablecoin Freeze

The $225 million freeze is the largest ever recorded for a stablecoin. The stablecoin issuer took this action across 37 wallets, with a significant portion of the frozen assets traced to OKX, a prominent cryptocurrency exchange that actively participated in the investigation.

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.

Check frozen TX here.https://t.co/TlfFJvpgiW pic.twitter.com/vEMTd3YzBq

— Lookonchain (@lookonchain) November 20, 2023

The investigation utilized advanced blockchain analysis tools provided by Chainalysis, demonstrating the growing collaboration between crypto entities and law enforcement agencies to combat criminal activities within the industry.

This is not the first time Tether has taken such proactive measures against criminal elements. In the past, the stablecoin issuer worked with Israel’s National Bureau for Counter-Terror Financing, freezing approximately $873,000 worth of USDT linked to funding bad guys activities in Ukraine. The recent freeze of $225 million adds another chapter to Tether’s commitment to maintaining the highest standards of integrity in the industry.

Impressive work by @Tether_to and @okx teams, alongside with Law Enforcement to stop bad guys🤝 https://t.co/P0U8ydP91x

— Paolo Ardoino 🤖🍐 (@paoloardoino) November 20, 2023