In a recent development, stablecoin issuer Tether has joined forces with the United States Department of Justice (DOJ) and crypto exchange OKX in a significant move to combat illicit activities within the crypto space. Approximately $225 million worth of USDT has been frozen as part of an investigation into a Southeast Asian human trafficking syndicate.
This collaborative effort, involving Tether, OKX, the DOJ, and U.S. law enforcement agencies, spanned several months. The frozen funds were identified in "external self-custodied wallets" and were linked to a crime syndicate conducting a "pig butchering" romance scam. This scam involves building online relationships, convincing individuals to invest in legitimate businesses, and ultimately defrauding them.
Tether's CEO, Paolo Ardoino, highlighted the company's proactive engagement with global law enforcement agencies and its commitment to transparency. The aim is to set a new standard for safety in the crypto space. The collaboration with the Department of Justice underscores Tether's dedication to fostering a secure environment and using technology and relationships to address illicit activities.
This is not the first time Tether has taken such actions. In the past, the company worked with Israel's National Bureau for Counter Terror Financing to freeze approximately $873,000 worth of USDT allegedly used for funding terrorist activities in Israel and Ukraine. The recent freeze of $225 million marks the largest in Tether's history
