Tether Takes Decisive Action Against Cybercrime, Freezes $225 Million in Largest-Ever USDT Freeze

In an unprecedented move, Tether, the renowned stablecoin issuer, has executed the “largest-ever freeze of USDT” in its history, amounting to a staggering $225 million. This decisive action was taken in close cooperation with the crypto exchange Okx, following an extensive investigation spearheaded by the U.S. Department of Justice (DOJ). The frozen funds, primarily stored in external self-custodial wallets, have been linked to a notorious human trafficking ring in Southeast Asia, implicated in a worldwide cryptocurrency scam known as “pig butchering.”

The collaboration between Tether, Okx, and law enforcement agencies, including the DOJ, involved rigorous blockchain analysis facilitated by Chainalysis, a leading blockchain analysis firm. This joint effort successfully pinpointed the locations of the illicit funds, resulting in a request for a freeze by the United States Secret Service and a proactive freeze initiated by Tether.

The operation led to the freezing of 37 wallets associated with the human trafficking group on Monday. These wallets were actively transferring USDT to the crypto exchange Okx. Tether has reassured that the frozen wallets are not related to its direct customers and are part of the secondary market. The firm also stated its commitment to working swiftly with law enforcement and wallet owners to unfreeze any lawful wallets inadvertently affected by this operation.

This action follows Tether's previous security measures in October, where it froze 32 addresses linked to suspicious activities in Israel and Ukraine. The company's vigilant approach underscores its dedication to maintaining the integrity of its operations and protecting its clients from emerging cyber threats.

The prevalence of “pig butchering” crypto scams has been increasing globally, posing a significant threat to investors and the cryptocurrency market. These scams, which the Federal Bureau of Investigation (FBI) has repeatedly warned about, involve luring victims into fraudulent cryptocurrency investments. In response, U.S. authorities have intensified their efforts to combat these schemes. In April this year, the DOJ successfully seized $112 million in cryptocurrencies related to a “pig butchering” scam. Furthermore, the Internal Revenue Service (IRS) recently issued a warning, highlighting that U.S. taxpayers are increasingly becoming targets of these elaborate schemes.

Tether's latest action in freezing a substantial amount of USDT is a clear testament to its commitment to safeguarding the cryptocurrency ecosystem and its users. The collaboration with Okx and law enforcement agencies demonstrates the effectiveness of joint efforts in combating cybercrime and upholding the security of digital assets.

As the cryptocurrency landscape continues to evolve, Tether remains at the forefront, setting a strong precedent for proactive measures against illicit activities. This historic freeze marks a significant milestone in the fight against cybercrime, showcasing the power of collaboration and advanced technology in maintaining integrity and trust in the digital currency space.