Since its launch in 2014, stablecoin issuer Tether has played a crucial role in assisting global law enforcement in the fight against illicit cryptocurrency activities. According to recent news, Tether has helped over 145 law enforcement agencies recover $108.8 million in USDT tied to illegal activities. This recovery effort is part of Tether’s broader mission to support authorities in combating the misuse of cryptocurrencies in criminal activities.
Collaboration with Law Enforcement
According to its CEO Paolo Ardoino, Tether collaborates with global law enforcement agencies to prevent and address illicit uses of its stablecoin. To this end, Tether has voluntarily blocked over 1,900 cryptocurrency wallets worldwide linked to illegal activities. These proactive interventions highlight Tether’s commitment to being a responsible player in the cryptocurrency space.
Measures Against Fraudulent Schemes
Some days ago, the US District Attorney’s Office for the Eastern District of North Carolina seized nearly $5 million worth of Tether (USDT) linked to a pig butchering ring. The funds traced to cryptocurrency addresses allegedly involved in laundering proceeds from these scams represent a significant victory for law enforcement. Furthermore, this fund seizure follows a similar raid by the Department of Justice in May, in which it arrested two individuals for running a $73 million money laundering scheme that converted funds into Tether’s USDT. Pig butchering scams are a particularly insidious form of fraud. In these scams, the scammer builds a fake online relationship with the victim, gaining their trust before luring them into investing in a fraudulent cryptocurrency project.
Wallet-Freezing Policy
In December 2023, Tether CEO announced the continuous support of the firm with the United States authorities and the Department of Justice to mitigate the operations of bad actors and help victims recover their assets. In one of the letters addressed to Senator Cynthia Lummis and Congressman J. French Hill, Ardoino highlighted Tether’s decision to deactivate USDT tokens in OFAC SDN-linked wallets. That same month, 41 wallets suspected to be associated with the list were frozen by Tether. Notably, most of these frozen accounts had not attempted to perform any illegal transaction, but Tether took action as a precautionary measure. That brought the total number of wallets that Tether froze for the U.S. authorities to 326, which is $435 million worth of USDT.
Thus, Tether demonstrates its commitment to collaborating with authorities and combating illicit activities in the cryptocurrency space, reinforcing its reputation as a responsible participant in the market.
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