Tether freezes USDT: How romance scams played a part



Title: Collaboration Between Crypto Companies and Law Enforcement Agencies Deters Criminal Use of Digital Assets

Subtitle 1: Tether Freezes 225 Million USDT Tokens Linked to Global Crime Syndicate

Subtitle 2: Rise in Pig Butchering Scams Highlights Importance of Awareness and Transparency

In a recent development, Tether [USDT] collaborated with OKX [OKB] and the United States Department of Justice to freeze 225 million USDT tokens connected to a global human trafficking syndicate. This action, the largest freeze of USDT ever, showcases the potential for collaboration between crypto companies and law enforcement agencies to prevent criminal use of digital assets.

The frozen assets were spread across 37 wallets, worth a total of $225 million, and were detected with the help of tools from blockchain analysis firm Chainalysis. Tether clarified that the wallets in question did not belong to its clients and expressed its commitment to working with agencies to unfreeze wallets that did not violate any laws.

The criminals involved in this syndicate operated in Southeast Asia and used a growing financial scam known as the pig butchering scam to siphon the funds. This type of scam involves fraudsters luring victims through dating apps and social media, convincing them to invest in a recommended platform, and then disappearing with the funds once they have been deposited.

The case highlights the increase in reported cases of pig butchering scams, signaling the importance of awareness and transparency in the crypto industry. Binance reported a 100% rise in pig butchering scams from 2022 to 2023, prompting warnings from the Federal Bureau of Investigation (FBI) about online frauds.

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On a positive note, the collaboration between Tether, OKX, and law enforcement agencies demonstrates the potential for crypto companies to work with authorities to prevent criminal activities. The transparent nature of blockchain technology played a crucial role in locating the wallets associated with the illegal transactions, showcasing the value of transparency in the industry.

In conclusion, the freeze of 225 million USDT tokens linked to a global crime syndicate and the rise in pig butchering scams serve as important reminders for individuals and businesses to remain vigilant in the cryptocurrency space. This case also highlights the potential for collaboration between crypto companies and law enforcement agencies to deter criminal use of digital assets and prevent financial scams.



### News source: eng.ambcrypto.com

By Team