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Tether and OKX freeze $225 million tied to trafficking scam

EditorHari G
Published 11/20/2023, 11:05 AM
Updated 11/20/2023, 11:05 AM

In a significant crackdown on illicit activities, Tether and cryptocurrency exchange OKX, in collaboration with the US Department of Justice (DOJ), have successfully immobilized $225 million USDT connected to a Southeast Asian human trafficking ring. This operation targeted a "pig butchering" scam, where victims globally were lured through fake romantic endeavors to extract financial assets.

The funds were frozen following meticulous blockchain analysis and the use of Chainalysis identification tools, which pinpointed the wallets associated with the criminal network. Tether's CEO Paolo Ardoino highlighted the firm's dedication to ensuring the safety and integrity of its operations. He emphasized Tether's ongoing efforts to maintain transparency and security within the crypto ecosystem.

OKX similarly underscored its commitment to fostering public good by strengthening essential partnerships with law enforcement agencies to combat financial crimes. This recent action aligns with previous collaborative efforts in the crypto industry aimed at disrupting illegal operations. Earlier instances include Tether freezing $873,000 USDT suspected of being linked to terrorist financing and Binance imposing account restrictions in response to requests from authorities.

These interventions by stablecoin issuers such as Tether showcase their unique capacity to intervene in transactions, a dynamic that sets them apart from decentralized cryptocurrencies like Bitcoin (BTC), where control is exclusively in the hands of individuals holding private keys. The ability to freeze funds reflects the nuanced balance between regulatory oversight and operational autonomy within the digital asset space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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