Tether Freezes 225 Million USDT Linked to Criminal Activity

On the evening of November 20, 2023, Tether, the world's largest stablecoin issuer, announced a significant freeze of 225 million USDT across multiple wallet addresses, totaling $225 million.

This marks the largest USDT freeze ever conducted by Tether.

Tether disclosed that the funds were associated with a cross-border human trafficking operation originating from Southeast Asia. The action follows an investigation by the US Department of Justice, in collaboration with blockchain data research firm Chainalysis, exchange platform OKX, and Tether.

Read more: What is USDT?

Tether emphasized that this incident serves as a positive signal that crypto companies can adhere to legal regulations, even as the cryptocurrency sector lacks comprehensive legal frameworks. The transparency provided by blockchain technology also facilitates easier tracing of funds, aiding in the exposure of criminal activities.

Paolo Ardoino, Tether's new CEO, stated:

"Through proactive global cooperation and commitment to transparency, Tether aims to set a new standard for the cryptocurrency industry. Our latest collaboration with the US Department of Justice reaffirms our dedication to fostering a secure environment. We believe that through technology and partnerships like OKX, we can proactively prevent criminal activities and maintain the highest standards in the industry."

Recently, Tether has been actively assisting various national authorities in preventing terrorism financing and money laundering, particularly amidst ongoing conflicts in Ukraine and Israel. Despite these efforts, Tether has faced scrutiny from US lawmakers investigating the role of USDT in illicit activities.

Benefiting from the clear recovery in the cryptocurrency market since mid-October, USDT's market capitalization has increased by an additional $4 billion, solidifying its position as the largest stablecoin in the cryptocurrency industry for Tether.