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 <p class="is-style-lead">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;</p>
 <p>Stablecoin issuer Tether reported freezing $225 million worth of its cryptocurrency USDT in a U.S. Department of Justice (DOJ) probe targeting an international human <a rel="noopener noreferrer nofollow" title="trafficking" href="https://thebittimes.com/tag/trafficking.html">trafficking</a> ring operating in Southeast Asia.&nbsp;</p>
 <p>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 <a rel="noopener noreferrer nofollow" title="syndicate" href="https://thebittimes.com/tag/syndicate.html">syndicate</a>.</p>
 <p>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.</p>
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    <p lang="en" dir="ltr">#PeckShieldAlert $USDT Added BlackList: 0x82e1d4ddd636857ebcf6a0e74b9b0929c158d7fb<br>Balance: $87.46Mhttps://t.co/TBUfA2Ae8Z</p>— PeckShieldAlert (@PeckShieldAlert) November 20, 2023
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Tether to start publishing data on USDT reserves in real-time
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 <p>The digital payment company said on-chain tracking tools provided by Chainlysis were leveraged in a joint <a rel="noopener noreferrer nofollow" title="investigation" href="https://thebittimes.com/tag/investigation.html">investigation</a> with the DoJ and crypto exchange OKX, per a Nov. 20 statement.&nbsp;</p>
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  <p>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.</p> <cite><strong>Paolo Ardoino, Tether CEO</strong></cite>
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 <p>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;</p>
 <p>The report comes nearly a month after two U.S. policymakers pressed the DoJ to consider prosecuting Tether and Binance for their alleged involvement in money laundering, terror financing, and other criminal acts.&nbsp;</p>
 <p>Prior to the proposal from Senator Cynthia Lummis and Representative French Hill, Tether had experienced a leadership change that installed former CTO&nbsp; Paolo Ardoino as CEO to replace Jean-Louis van der Velde.&nbsp;</p>
 <p>USDT’s operator, a major U.S. treasury bill holder, also froze 32 addresses linked to illicit finance in Israel and Ukraine, two countries amid geopolitical conflict.&nbsp;&nbsp;</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Legal victory for Tether and Bitfinex as plaintiff drops lawsuit
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/tether-freezes-225m-usdt-tied-to-doj-trafficking-syndicate-investigation-tbt70953.html">https://thebittimes.com/tether-freezes-225m-usdt-tied-to-doj-trafficking-syndicate-investigation-tbt70953.html</a></p>

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

TheBitTimes

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