The USDT stablecoin’s issuer, Tether, has frozen almost $28.67 million on 12 TRON blockchain addresses and an extra $99,630 on one Ethereum address.
This action is part of Tether’s ongoing efforts to prevent illicit conduct utilizing its tokens.
Why Did Tether Freeze The Funds?
The account freezing comes over the suspicion that the frozen addresses are connected to phishing and other cybercrimes. This action is consistent with Tether’s track record of working with law enforcement to stop its stablecoin from being abused.
Tether has reaffirmed its commitment to anti-money laundering (AML) procedures and regulatory compliance by freezing more than $2.5 billion in USDT linked to illegal activity to far.
This action is consistent with Tether’s track record of working with law enforcement to stop its stablecoin from being abused. Tether has reaffirmed its commitment to anti-money laundering (AML) procedures and regulatory compliance by freezing more than $2.5 billion in USDT linked to illegal activity to far.
Tether Struggles to Keep USDT Out of Illegal Reach
Tether (USDT), one of the most popular stablecoins on the cryptocurrency market, has been connected more and more to illegal activity because of its popularity, speed, and stability.
It is appealing to both legitimate users and cybercriminals due to its near-instantaneous transaction capabilities and 1:1 peg to the US dollar.
Scams, money laundering, and fraudulent schemes frequently employ USDT, particularly on peer-to-peer networks and decentralized exchanges with lax KYC regulations.
Authorities have noted its use in phishing and ransomware payments. Tether has responded by working with law officials around the world and freezing billions of dollars’ worth of assets linked to dubious wallets.
The stablecoin fulfills important financial purposes, yet abuse of it still presents significant security and regulatory issues.
Tether Takes Strict Measures to Curb Illegal Activities
Tether, the issuer of USDT, is taking significant steps to curb illicit activities involving its stablecoin. Partnering with blockchain analytics firm Chainalysis, Tether has deployed advanced tools to monitor transactions, identify suspicious activity, and flag wallets linked to sanctioned entities.
The company actively collaborates with global law enforcement agencies, including the U.S. Department of Justice and the Secret Service, to investigate and freeze funds tied to scams, phishing, and other illegal activities.
To date, Tether has frozen over $2.5 billion in USDT related to illicit use. These efforts highlight Tether’s commitment to upholding regulatory standards and enhancing transparency, aiming to maintain trust and safety in the growing digital asset ecosystem.
Also Read: Tether Freezes 3 Wallet Addresses Holding Total of 870,000 USDT Possibly Due To Crypto Hack