Tether, the company in charge of issuing USDT, executed the largest fund freeze in history, blocking $225 million linked to human trafficking operations.
The company collaborated with the cryptocurrency exchange OKX and the United States Department of Justice (DOJ) in this operation. The blockchain analysis firm Chainalysis also played a crucial role.
The investigation led Tether to proactively and voluntarily freeze approximately $225 million worth of USDT tokens. External self-custodied wallets associated with an international human trafficking syndicate in Southeast Asia, responsible for a global scam known as the ‘pig butchering’ scheme, linked these.
Tether and OKX proactively alerted U.S. law enforcement agencies, including the DOJ, to the location of illicit funds by analyzing the flow of those funds through the blockchain following a months-long investigation.
These actions prompted a freeze request by the United States Secret Service and a voluntary freeze by Tether, culminating in the largest USDT freeze in history.
Tether will promptly collaborate with the owners of those wallets to unfreeze them, as appropriate, to the extent that this operation affected lawful wallets. The frozen wallets in the secondary market are not associated with Tether’s customers.
Tether Enhances Industry Integrity
Paolo Ardoino, CEO of Tether, stated, “Through proactive engagement with global law enforcement agencies and our dedication to transparency, Tether aims to set a new standard of safety within the crypto space.”
Ardoino added that collaboration with the Department of Justice underscores their dedication to fostering a secure environment. The company believes in leveraging technology and relationships to proactively address illicit activities and uphold the highest standards of integrity in the industry.
Jason Lau, Chief Innovation Officer at OKX, highlighted the importance of collaborating with all industry stakeholders, including law enforcement agencies, as a fundamental pillar of their approach to building trust and contributing to the public good in the cryptocurrency industry.
Tether demonstrates its commitment to industry integrity by following rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, in line with the Bank Secrecy Act and the best practices of financial institutions.
Additionally, the company collaborates with global law enforcement to prevent unlawful actions through the investigation of suspicious transactions in the secondary market.
