- Tether, the world’s largest stablecoin issuer, has frozen 5.2 million USDT tokens linked to 12 Ethereum addresses.
- The addresses are suspected to be connected to money laundering activities for phishing groups.
- This follows a series of similar actions by crypto firms, including a historic freeze of over 225 million USDT tokens by Tether in November 2023.
Tether takes a firm stand against illicit activities in the crypto space, freezing 5.2 million USDT tokens suspected to be linked to phishing groups’ money laundering operations.
Tether Freezes 5.2 Million USDT Tokens
On May 14, Tether, the company behind the world’s largest stablecoin by market capitalization, froze 5.2 million USDT tokens. The action was reported by MistTrack, a crypto tracking and compliance platform. The frozen tokens were associated with 12 Ethereum addresses tagged as “USDT Banned Address” by MistTrack. These addresses are suspected to be linked to money laundering activities for phishing groups, a common practice among attackers in the crypto space.
Previous Freezes by Tether and Other Crypto Firms
In November 2023, Tether announced the “largest-ever freeze of USDT in history” in collaboration with digital asset trading platform OKX. Over 225 million USDT tokens linked to 37 wallets were frozen, with the funds tied to a human trafficking group. In December 2023, Tether also froze 41 wallets controlled by individuals on the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) List. It’s worth noting that crypto firms have been actively freezing addresses associated with scammers and hackers. For instance, Binance and Huobi froze $1.4 million worth of crypto assets tied to Lazarus Group’s Harmony Bridge heist in June 2022.
The Role of Crypto Firms in Combating Illicit Activities
Crypto firms have a crucial role to play in combating illicit activities in the crypto space. By freezing addresses linked to such activities, these firms can help disrupt the operations of scammers, hackers, and other malicious actors. This not only protects the integrity of the crypto space but also helps maintain public trust in digital currencies. Tether’s recent action is a testament to this commitment.
Conclusion
The freezing of 5.2 million USDT tokens by Tether is a significant move in the fight against illicit activities in the crypto space. It underscores the firm’s commitment to maintaining the integrity of its stablecoin and the broader crypto market. As the crypto space continues to evolve, such actions are crucial in ensuring its safety and reliability for users worldwide.
