Crypto stablecoin issuer, Tether has frozen about 225 million USDT tokens in a proactive move against an international human trafficking ring in Southeast Asia.
For several months, the Department of Justice, Tether, and OKX jointly investigated an international crime group operating in Southeast Asia. Their investigation led them to uncover a global romance scam orchestrated by a syndicate known as the “pig butchering” plan.
To track the flow of illegal funds, investigators utilized tools from the blockchain research company Chainalysis. Additionally, Tether and OKX proactively shared information with U.S. law enforcement regarding the whereabouts of the stolen USDT tokens, leading to further action.
As a result, approximately 225 million Tether tokens were frozen, marking the largest freeze of USDT in history. This significant action showcases the commitment of cryptocurrency industry leaders to collaborate with law enforcement in combating illicit activities within the sector.
Transparency in blockchain transactions is a crucial factor in combating illegal activities and establishing a high standard for the cryptocurrency industry. Tether’s proactive measures exemplify the industry’s dedication to maintaining honesty and security.
It is important to note that the frozen wallets are not associated with any Tether accounts and are located on the secondary market. Tether has also pledged to collaborate swiftly with law enforcement agencies and affected wallet owners to unfreeze legal wallets.
Tether places great emphasis on its commitment to stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These measures align with the Bank Secrecy Act and represent best practices within the industry. They demonstrate a steadfast dedication to adhering to regulations and conducting financial transactions with integrity.
Jason Lau, Chief Innovation Officer of OKX, emphasized the significance of collaboration between law enforcement agencies and industry professionals. He affirmed OKX’s ongoing support for such projects, aiming to foster trust and assist individuals involved in the field.
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