Tether Halts $225M Associated with Human Trafficking Amid DOJ Probe

In response to an ongoing U.S. Department of Justice (DOJ) investigation into an international human trafficking network in Southeast Asia linked to the "pig butchering" scheme, Tether, the stablecoin issuer, has taken decisive measures. A substantial $225 million, associated with the illicit activity, has been frozen by Tether, marking the most significant stablecoin freeze to date.

This meticulous investigation, spanning several months, employed cutting-edge blockchain analysis tools provided by Chainalysis, as detailed in an official press release. Tether's intervention led to the freezing of the identified $225 million across 37 wallets, with a notable portion having been previously transferred to OKX, a cryptocurrency exchange implicated in the inquiry.

Tether froze ~225M $USDT (37 wallets) linked to a human trafficking group 1 hour ago.

These wallets had been moving $USDT before being frozen, with most of the $USDT being transferred to #OKX.

Check frozen TX here.https://t.co/TlfFJvpgiW pic.twitter.com/vEMTd3YzBq

— Lookonchain (@lookonchain) November 20, 2023

❄ ❄ ❄ ❄ An address with a balance of 87,464,642 #USDT (87,511,217 USD) has just been frozen!https://t.co/XOvIpuh3PT

— Whale Alert (@whale_alert) November 20, 2023

The criminal syndicate involved in the "pig butchering" scam reportedly cost U.S. citizens a staggering $3.3 billion last year, according to the Federal Bureau of Investigation (FBI). Notably, the frozen tokens were stored in self-custodied wallets and did not have any connection to Tether's regular clientele, underscoring this point in the official press release.

Paolo Ardoino, the CEO of Tether, expressed the company's unwavering commitment to establishing a new safety standard within the cryptocurrency space. He emphasized Tether's proactive collaboration with global law enforcement agencies and its dedication to transparency as essential elements in achieving this goal.

This recent action by Tether follows another significant move in the form of freezing 32 crypto addresses associated with terrorism and warfare in Ukraine and Israel, underscoring the company's commitment to mitigating potential risks and ensuring the integrity of its stablecoin ecosystem.

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