 ▲ Cryptocurrency hacking |
Stablecoin issuer Tether has frozen $4.2 billion in assets linked to money laundering and fraudulent activities, stepping up efforts to clean up the market in cooperation with regulators.
According to cryptocurrency media outlet Cointelegraph on February 28 (local time), Tether announced that it has frozen approximately $4.2 billion worth of USDT connected to illicit activities over the past three years. The move represents a large-scale asset blockade as global investigative authorities strengthen oversight of crimes involving virtual assets. Tether explained that $3.5 billion of the total frozen assets were blocked since 2023.
A notable example of cooperation includes the freezing of approximately $61 million worth of USDT in collaboration with the U.S. Department of Justice (DOJ) and Homeland Security Investigations (HSI). The assets were identified as proceeds from a romance scam known as a “pig-butchering” scheme. At the request of law enforcement agencies, Tether blacklisted the relevant wallet addresses on the blockchain to remotely prevent the movement of funds.
Tether’s circulating supply has surged from about $70 billion three years ago to more than $180 billion today, expanding its dominance in the market. Tether CEO Paolo Ardoino stated, “We are leveraging blockchain technology to help investigative authorities respond quickly to criminal activity,” reaffirming the company’s commitment to fostering a transparent financial ecosystem. Tether currently collaborates with more than 310 law enforcement agencies across 64 countries.
With money laundering through the virtual asset market reaching $82 billion last year and regulatory concerns mounting, Tether’s announcement highlights the management capabilities of centralized stablecoins. The Financial Action Task Force (FATF) has recommended that governments take strong measures against illicit financial activities in the cryptocurrency market. Tether said it will continue tracking and freezing assets to eradicate serious crimes such as human trafficking and terrorist financing.
Tether plans to proactively block the circulation of illicit assets by utilizing real-time monitoring systems and analytical tools. Close cooperation with investigative authorities suggests that stablecoins can serve not only as payment instruments but also as effective tools for crime prevention. Users are advised to conduct transactions through official channels to ensure asset safety and can expect enhanced market transparency alongside evolving regulatory frameworks.
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