Stablecoin issuer Tether has frozen 225 million USDT (Tether) associated with an international human trafficking and money laundering operation in Southeast Asia. The freezing operation, conducted in collaboration with OKX and the United States Department of Justice (DOJ), represents the largest freeze operation ever carried out by Tether.
Cryptocurrencies are increasingly being used by criminal organizations in their operations. However, leading companies in the crypto industry are cooperating with authorities to prevent illicit activities. In this recent incident, the stablecoin giant utilized Chainalysis’ blockchain analysis to identify and track illegal funds. Tether collaborated with the cryptocurrency exchange OKX for the freezing operation, and law enforcement agencies, including the DOJ and the Secret Service, were also involved. Tether made the following statement on its official X account regarding the development:
The targeted operation involved an international syndicate conducting “pig butchering” romance scams, a fraudulent scheme to lure victims into fake relationships and ultimately steal their money. Authorities state that losses from such scams amount to billions of dollars annually.
Tether and OKX officials made statements on the matter
The stablecoin giant and its partners initiated the investigation by analyzing activities on the blockchain. As a result, they identified wallets associated with the criminal group’s money laundering infrastructure. Subsequently, they voluntarily provided this information to law enforcement, leading to an official freeze request from the DOJ. Tether CEO Paolo Ardoino made the following statement regarding the issue:
OKX Chief Innovation Officer Jason Lau similarly commented on the matter. Lau emphasized the importance of collaboration between crypto firms and regulators to promote integrity and security. The investigation based on cooperation with the stablecoin issuer highlights how transparency in blockchain transactions can aid in deterring and preventing illegal finance.
Crypto industry supports compliance efforts
In the end, the stablecoin giant and its partners thwarted a significant human trafficking operation by freezing illegal funds. This incident also underscores the potential of blockchain analysis to enhance regulatory oversight. The company remains committed to supporting compliance efforts in the crypto sector through collaboration with global authorities.
