Tether Freezes $5.2M in USDT Linked to Phishing Scams
Tether, the largest stablecoin issuer, has taken action to freeze USDT tokens worth $5.2 million that were linked to phishing scams. These funds were held in 12 Ethereum wallets that had been labeled as “USDT Banned Address.” Slomist, an on-chain analytic firm, stated that these addresses were being used to launder money obtained from phishing scams, although further details were not provided.
Tether has a track record of freezing assets associated with hacks, exploits, and scams. CEO Paolo Ardoino disclosed that the company has blocked over $1.3 billion since its establishment, with approximately $1.6 million attributed to terrorist financing. As an example, in January 2022, Tether added three Ethereum addresses containing more than $150 million in USDT to its blacklist. Similarly, in October 2022, Tether froze $8.2 million of USDT on Ethereum and blacklisted 215 Ethereum-based addresses. By late 2022, the company had frozen over $360 million in assets. In October 2023, Tether froze $817,000 of USDT linked to terrorist activities in Ukraine and Israel, and the following month, it froze $225 million of USDT connected to romance scammers.
Tether has also collaborated with 24 law enforcement agencies across over 40 different countries. Over the past 12 months, the company has worked on 198 requests from law enforcement agencies to block wallets, and in the past three years, it has received 339 such requests. Tether has implemented controls in the secondary market to freeze any activity connected to individuals listed on the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. The OFAC list includes companies or individuals that are owned or controlled by sanctioned countries.
The use of blockchain technology allows cryptocurrency companies like Tether to monitor transactions on-chain, while the centralized nature of stablecoins enables issuers to freeze assets associated with illicit activities at the request of law enforcement agencies. reached out to Tether for more information on the banned addresses and their connection to phishing scams, but no response was received by the time of publication.
20 thoughts on “Tether Freezes $5.2M in USDT Linked to Phishing Scams”
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Tether’s collaboration with law enforcement agencies sets a positive example for the entire crypto industry. Together, we can create a safer digital economy.
Tether’s efforts to block wallets linked to terrorist financing and romance scams are vital in safeguarding the integrity of the crypto space.
How many more scams and illicit activities will it take for Tether to take real action and prevent them from happening?
It’s great to see Tether taking proactive measures to combat illicit activities. This fosters trust in the crypto space and protects investors.
Tether froze $360 million in assets? Maybe they should focus more on preventing scams rather than just freezing funds afterwards.
Maintaining a transparent and secure crypto space is crucial, and Tether’s actions against phishing scams are a step in the right direction. Well done! 👍🔒
This is unacceptable! Tether constantly freezing assets and yet they can’t provide any details or transparency about their actions.
Tether collaborates with law enforcement agencies, but what about preventing these activities instead of just freezing funds after the fact?
No response from Tether regarding the banned addresses and their connection to phishing scams? How can we trust them with our funds?
Tether freezing wallets connected to sanctioned countries is not enough. They should be proactive in preventing such activities.
million in USDT blacklisted and frozen in January? How many more scams will Tether allow before taking action?
The fact that Tether has frozen over $360 million in assets is a testament to their commitment to protecting users and keeping the crypto ecosystem safe.
Kudos to Tether for actively working to prevent scams and money laundering. Their efforts contribute to the overall legitimacy of cryptocurrencies.
Tether’s dedication to freezing assets associated with illicit activities shows their commitment to maintaining a secure and trustworthy crypto environment.
requests from law enforcement agencies in the past 12 months? Maybe Tether needs to rethink their security measures.
Tether’s ability to freeze assets associated with phishing scams showcases the power of stablecoin issuers to take decisive action.
Tether’s actions against phishing scams demonstrate their dedication to ensuring the safety and trustworthiness of the stablecoin market.
Tether’s utilization of blockchain technology for monitoring transactions sets an example for other stablecoin issuers to follow. Keep up the good work!
Kudos to Tether for collaborating with law enforcement agencies worldwide! Together, they are making a significant impact in combating illicit activities in the crypto space.
Tether’s efforts to block wallets connected to individuals on the OFAC SDN list highlight their commitment to compliance and integrity.