Tether Freezes $5.2M USDT Associated with Phishing Scams, Continues Crackdown on Illicit Activities
Summary:
Tether, a leading stablecoin issuer, froze $5.2 million worth of USDT on May 14, due to its linkage with phishing scams. The funds were located in 12 Ethereum wallets marked as "USDT Banned Address". With a previous history of freezing billions linked to illicit activities, Tether has cooperated with law enforcement agencies in over 40 countries. Boasting a track record of blocking more than $1.3 billion since its inception, Tether has emerged as a conscientious player in the crypto sphere. While the centralized nature of stablecoins allows issuers like Tether to freeze assets tied to illicit activities, the blockchain transparency facilitates on-chain fund monitoring.
On May 14, Tether, the leading issuer of the stablecoin USDT, immobilized $5.2 million USDT associated with cyber phishing activities. The flagged USDT was secured in 12 Ethereum wallets, identified as "USDT Banned Address." According to Slomist, a blockchain analytic entity, the flagged addresses were engaged in money laundering activities related to phishing scams. No further information was disclosed.
Tether has a history of immobilizing vast amounts of assets associated with illicit activities such as cyber hacks, fraud, and other scams. The firm's CEO, Paolo Ardoino, revealed that since its establishment, they have immobilized over $1.3 billion, of which approximately $1.6 million was tied to financing terrorism.
By adding three Ethereum addresses to the blacklist in January 2022, Tether immobilized more than $150 million worth of USDT. Similarly, in October 2022, Tether blocked the flow of $8.2 million USDT on Ethereum and added 215 Ethereum-based USDT addresses to the blacklist. By the close of 2022, Tether had immobilized upwards of $360 million in assets.
In October 2023, Tether immobilized $817,000 USDT associated with terrorist activities in Ukraine and Israel, followed by an immobilization of $225 million linked to romance scams the next month.
Tether has partnered with 24 law enforcement agencies across over 40 nations. In the past year, the firm has complied with 198 requests from law enforcement to immobilize wallets and 339 requests over the past three years.
Furthermore, Tether implemented secondary market controls to freeze activities linked with entities on the U.S. Office of Foreign Assets Control's (OFAC) Specially Designated Nationals (SDN) list. Companies or individuals controlled by sanctioned nations are included in this list.
Cryptocurrency firms harness the power of decentralized ledger technology to monitor fund movements on-chain. The centralized aspect of stablecoins allows issuers like Tether to freeze assets associated with illicit activities, complying with law enforcement requests.
Cointelegraph approached Tether for further details on the nature of the blacklisted addresses and the related phishing scams. However, they failed to respond by the time of publication.
Recently, US enforcement agencies have been intensifying their focus on crimes associated with cryptocurrency.
Published At
5/14/2024 11:48:04 AM
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