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The funds seized by Tether were linked to a “pig butchering” scam that cost U.S. citizens $3.3 billion in 2022, according to the FBI.&nbsp;
Stablecoin issuer Tether reported freezing $225 million worth of its cryptocurrency <a href="https://crypto.news/price/tether/" rel="noopener noreferrer nofollow">USDT</a> in a U.S. Department of Justice (DOJ) probe targeting an international human trafficking ring operating in Southeast Asia.&nbsp;
Per the FBI, the “pig butchering” scam involved a romantic scheme set up by scammers who engineered fake crypto exchanges to steal billions from American users. The theft usually started with a “Hi” text and ended with victims trading on platforms operated by this syndicate.
Blockchain analytics provider Peckshield pointed to at least six blacklisted wallet addresses. One wallet held as much as $87 million in Tether’s U.S. dollar-pegged stablecoin. These funds were held in external self-custodial wallets, meaning they did not belong to Tether customers.
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 <a href="https://twitter.com/hashtag/PeckShieldAlert?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#PeckShieldAlert</a> <a href="https://twitter.com/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$USDT</a> Added BlackList: 0x82e1d4ddd636857ebcf6a0e74b9b0929c158d7fb Balance: $87.46M<a href="https://t.co/TBUfA2Ae8Z" target="_blank" rel="noopener noreferrer nofollow">https://t.co/TBUfA2Ae8Z</a>— PeckShieldAlert (@PeckShieldAlert) <a href="https://twitter.com/PeckShieldAlert/status/1726599234336834003?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">November 20, 2023</a>
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You might also like: <a href="https://crypto.news/tether-to-start-publishing-data-on-usdt-reserves-in-real-time/" rel="noopener noreferrer nofollow"> Tether to start publishing data on USDT reserves in real-time </a>
The digital payment company said on-chain tracking tools provided by Chainlysis were leveraged in a joint investigation with the DoJ and crypto exchange OKX, per a Nov. 20 <a href="https://tether.to/en/following-investigations-by-tether-okx-and-the-us-department-of-justice-tether-voluntarily-freezes-225m-in-stolen-usdt-linked-to-international-crime-syndicate/" target="_blank" rel="noopener noreferrer nofollow">statement</a>.&nbsp;
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 Our recent collaboration with 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. <cite>Paolo Ardoino, Tether CEO</cite>
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Jason Lau, OKX’s chief innovation officer, added that communication efforts between crypto stakeholders and law enforcement are a cornerstone for bolstering the public’s safety.&nbsp;
The report comes nearly a month after two U.S. policymakers <a href="https://crypto.news/doj-asked-to-mull-criminal-charges-against-binance-and-tether/" rel="noopener noreferrer nofollow">pressed</a> the DoJ to consider prosecuting Tether and Binance for their alleged involvement in money laundering, terror financing, and other criminal acts.&nbsp;
Prior to the proposal from Senator Cynthia Lummis and Representative French Hill, Tether had experienced a leadership change that <a href="https://crypto.news/stablecoin-issuer-tether-appoints-paolo-ardoino-as-new-ceo/" rel="noopener noreferrer nofollow">installed</a> former CTO&nbsp; Paolo Ardoino as CEO to replace Jean-Louis van der Velde.&nbsp;
USDT’s operator, a <a href="https://crypto.news/tether-becomes-one-of-us-treasury-bills-major-holders/" rel="noopener noreferrer nofollow">major U.S. treasury bill holder</a>, also froze 32 addresses <a href="https://crypto.news/tether-has-frozen-32-addresses-linked/" rel="noopener noreferrer nofollow">linked</a> to illicit finance in Israel and Ukraine, two countries amid geopolitical conflict.&nbsp;&nbsp;
Read more: <a href="https://crypto.news/legal-victory-for-tether-and-bitfinex-as-plaintiff-drops-lawsuit/" rel="noopener noreferrer nofollow"> Legal victory for Tether and Bitfinex as plaintiff drops lawsuit </a>

Tether freezes $225m USDT tied to DoJ trafficking syndicate investigation

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