Tether Takes Swift Action: Phishing Links Lead to Freezing of $5.2M in USDT
Tether, the leading stablecoin issuer, continues to demonstrate its commitment to combating illicit activities in the cryptocurrency industry. In a recent move, Tether identified and froze USDT worth $5.2 million to enforce strict network controls and fight against money laundering.
The suspicious funds were initially flagged by blockchain tracking platform MisTrack. They were distributed across 12 Ethereum wallets that were labeled as “USDT Banned Addresses.” These funds were believed to have been laundered from various phishing schemes.
The freezing of the USDT highlights Tether’s proactive measures to combat illicit activities and maintain the integrity and security of its network. Earlier this year, Tether partnered with the US Department of Justice (DoJ) and the Federal Bureau of Investigation (FBI) to seize $1.4 million worth of USDT from a tech support scam network.
Tether also maintains a vigilant approach to monitor USDT addresses and takes major actions to blacklist suspicious addresses. In January 2022, the company blacklisted three Ethereum addresses holding over $150 million in USDT. In October 2022, Tether froze $8.2 million in USDT on Ethereum and added 215 Ethereum-based USDT addresses to the blacklist.
The company has been swift in responding to emerging threats. In late 2022, Tether froze over $360 million in assets linked to illicit activities and took action against USDT associated with terrorist activity in Ukraine and Israel, freezing $817,000 in October 2023. Additionally, in November 2023, $225 million in USDT associated with romance scams was also frozen.
To further enhance its efforts, Tether has partnered with Chainalysis to develop monitoring and analysis tools that can identify wallets posing risks or linked to illicit or sanctioned addresses.
The recent freezing of USDT by Tether comes in the midst of a UN report that identified USDT as the preferred cryptocurrency for money laundering, leading to speculation of a potential US government investigation. Ripple CEO Brad Garlinghouse added to the speculation by suggesting that the US government is targeting Tether. However, Tether CEO Paolo Ardoino dismissed these claims, highlighting Tether’s collaboration with law enforcement agencies and its efforts to combat illicit activities. Ardoino also pointed out that Ripple itself is under investigation by the SEC and insinuated that Garlinghouse’s comments were driven by Ripple’s upcoming stablecoin, which could compete with USDT.
Tether’s collaborations with law enforcement agencies have been crucial in identifying and mitigating risks associated with illicit activities involving USDT. The company has worked with 24 agencies across more than 40 countries, responding to 198 requests to block wallets in the last 12 months and 339 requests in the last three years.