Tether’s Latest Crackdown: $5.2 Million Frozen To Stop Phishing Scandals In Their Tracks

As a seasoned crypto investor with a keen interest in the regulatory landscape and market integrity, I view Tether’s recent actions to freeze approximately 5.2 million USDT from addresses associated with phishing operations as a positive development. The transparency and accountability demonstrated by Tether in working alongside law enforcement agencies to combat illicit financial activities are commendable.


To curb illegal financial transactions, Tether, the organization managing the world’s leading stablecoin in terms of market value, has halted access to around 5.2 million USDT units.

As a crypto analysis expert, I’d like to share that MistTrack recently disclosed an incident involving twelve specific Ethereum addresses. These addresses were flagged due to their association with phishing schemes.

Details Of The Freeze

As a researcher studying phishing attacks, I’ve observed that certain addresses implicated in these scams carry a label of “USDT Banned Address.” This designation suggests that these addresses have previously been linked to money laundering schemes, a common association among phishing groups.

Phishing gangs frequently move stolen funds to alternative sites and employ cryptocurrency tumblers to conceal the source of their ill-gotten wealth.

MistTrack Alert

Recently, Tether halted approximately 5.2 million dollars worth of USDT in 12 specific accounts. These particular accounts share a connection to addresses labeled as “USDT Banned” within the MistTrack system.

— MistTrack (@MistTrack_io) May 14, 2024

Tether’s recent freeze is part of a broader strategy to undermine these illicit activities by cutting off access to crucial financial resources.

As a crypto investor, I’ve noticed that recent events aren’t isolated incidents. Last year, Tether and OKX collaborated on what turned out to be a significant freeze of USDT. This action affected over 225 million USDT distributed across 37 wallets. Upon further investigation, it was discovered that these wallets were linked to a human trafficking network.

As a Tether analyst, I can express this by saying that our recent actions demonstrate our ongoing commitment to leveraging our technological resources to assist global law enforcement in their efforts to combat and minimize criminal activities.

Paolo Ardoino, the new CEO of Tether, reaffirmed the company’s dedication, expressing, “Tether continues to stand firm behind law enforcement initiatives and assist victims in their restoration process.”

I strongly believe in Tether’s commitment to preventing the misuse of USDT or any cryptocurrency for illegal activities. They take this issue seriously and are steadfastly dedicated to collaborating with global law enforcement agencies to uphold the ethical standards of the digital asset ecosystem.

The Larger Picture: Tether’s Role In Combating Illicit Crypto Flows

Despite Tether’s extensive use in the cryptocurrency market, it has unfortunately become a common instrument for illicit transactions. According to a report by TRM Labs, Tether was involved in $19.3 billion worth of illegal transactions in 2023, representing a decrease from the previous year’s volume of $24.7 billion.

As a financial analyst, I’ve conducted an in-depth examination of TRM’s findings. Notably, US Dollars tied to the Tron blockchain, where a substantial number of stablecoin issuers reside, have been identified as the preferred currency for entities involved in terrorist financing activities according to their analysis.

As a crypto investor, I’ve noticed an alarming trend in the transactions on this particular blockchain. There has been a staggering 125% rise in addresses associated with terror financing receiving USDT (Tether). This underscores the intricacies and challenges we face in controlling such illicit activities within the decentralized world of cryptocurrencies.

Currently, Tether’s business practices face intense examination from regulatory bodies around the world. Notably, the Financial Times revealed that the UN Office on Drugs and Crime has pinpointed Tether as a popular choice among money laundering and fraud schemes in Southeast Asia.

As a neutral analyst, I’d rephrase that by saying: “In response, Ardoino voiced concerns over the report, expressing his belief that its authors lacked a comprehensive grasp of the facts and exhibited a prejudice towards traditional finance. He argued that this sector is finding it challenging to keep pace with the groundbreaking advancements brought about by new technologies.”

Tether’s Latest Crackdown: $5.2 Million Frozen To Stop Phishing Scandals In Their Tracks

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2024-05-14 22:12