Tether Halts $225M Amid DOJ Probe into Human Trafficking Links

• Tether Freezes $225 Million of Its Stablecoin Amid DOJ Investigation
• Details of the Investigation and Chainalysis Involvement
• The Crime Syndicate and the Pig Butching Scam
• The Impact on Tether Customers
• Tether's Response and Future Measures
• Tether's Recent Actions against Crime in the Crypto Space

Tether Freezes $225 Million of Its Stablecoin Amid DOJ Investigation

Tether$1.000 -0.12%, a prominent stablecoin issuer, has halted the operation of $225 million of its cryptocurrency. This move comes in the wake of an investigation spearheaded by the U.S. Department of Justice (DOJ) into a significant human trafficking group in Southeast Asia.

Details of the Investigation and Chainalysis Involvement

The investigation has been in progress for several months, leveraging blockchain analysis tools supplied by Chainalysis. This case represents the largest recorded freeze of a stablecoin to date, according to an official press release.

The Crime Syndicate and the Pig Butching Scam

The implicated crime syndicate is tied to the infamous pig butchering scam. The Federal Bureau of Investigation (FBI) reports that this scam pilfered $3.3 billion from U.S. citizens in the previous year.

The Impact on Tether Customers

The frozen tokens were in self-custodied wallets, indicating that they did not belong to Tether clients, as confirmed in the press statement.

Tether's Response and Future Measures

With our active engagement with international law enforcement agencies and our dedication to transparency, Tether seeks to establish a new safety benchmark in the cryptocurrency sector, Paolo Ardoino, Tether's CEO, stated.

Tether's Recent Actions against Crime in the Crypto Space

In a similar vein, Tether took action by freezing 32 cryptocurrency addresses last month. These addresses were purportedly linked to acts of terrorism and warfare in Ukraine and Israel.

Edited by Jonathan Stoker