- The human traffic network in Southeast Asia was behind a global “pig butchering” romance scam
- The frozen assets are not connected to Tether’s clients
Tether, the issuer of USDT, the biggest stablecoin by market cap, and international crypto exchange OKX assisted the US Department of Justice (DOJ) in an investigation that resulted in Tether’s freezing USDT tokens worth approximately 225 million.
The funds were linked to an organized human traffic network in Southeast Asia, which was behind a global “pig butchering” romance scam, Bankless Times learned from a post on Tether’s blog.
The biggest freeze in history
Tether’s action represents the biggest stablecoin freeze in history. The DOJ conducted the joint investigation using tools provided by blockchain analysis company Chainalysis.
The DOJ and other US law enforcement agencies analyzed the on-chain flow of funds over the course of the investigation, which alerted them to the location of illicit funds. Tether froze the assets voluntarily. These assets are not connected to Tether’s clients, and the frozen wallets are on the secondary market.
Lawful wallets will be unfrozen in cooperation with law enforcement and the wallet owners. Tether CEO Paolo Ardoino commented:
Our recent assistance to the Department of Justice underscores our dedication to fostering a secure environment. We believe in leveraging technology and relationships, such as our collaboration with OKX, to proactively address illicit activities and uphold the highest standards of integrity in the industry.
OKX Chief Innovation Officer Jason Lau added:
Collaborating with industry stakeholders, including law enforcement agencies, is a key tenet of our approach to building trust and serving the public good as a leader in the crypto industry. At OKX, we will continue to contribute to these initiatives on a proactive basis.
The two companies’ proactive measures are an example of how crypto industry leaders can cooperate with global law enforcement agencies to combat crime. The transparency of blockchain transactions deters illegal activities effectively, setting an important precedent for the industry.
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