Tether, the biggest name in stablecoins, just flexed its muscles in the fight against crypto crime. On May 14th, they froze a cool $5.2 million worth of USDT (Tether's cryptocurrency) linked to a nasty phishing scam.
Phishing Phonies Frozen: How Tether Took Action
This ill-gotten loot was stashed away in 12 different Ethereum wallets that Tether flagged as "USDT Banned Address." Security experts believe these wallets were used to launder stolen funds from phishing scams, but further details remain under wraps.
This isn't Tether's first rodeo when it comes to battling crypto crime. Over their lifespan, they've frozen a staggering $1 billion in assets tied to various nefarious activities, working hand-in-hand with law enforcement agencies globally. Tether CEO Paolo Ardoino even claims they've blocked over $1.3 billion in total, with roughly $1.6 million specifically linked to terrorist financing.
A History of Taking a Stand
Tether's commitment to a cleaner crypto space is evident in their past actions. In 2022 alone, they blacklisted over $150 million worth of USDT across three Ethereum addresses and froze an additional $8.2 million in a separate incident. By late 2022, their total frozen assets surpassed a whopping $360 million.
Recent months have seen Tether continue their crusade. In October 2023, they froze $817,000 in USDT linked to terrorist activity, and a month later, they stopped a $225 million romance scam in its tracks.
Collaboration is Key
Tether doesn't operate in a vacuum. They actively collaborate with over 24 law enforcement agencies across 40 countries, responding to hundreds of requests to block suspicious wallets. Additionally, they offer secondary market controls to freeze assets linked to individuals or entities on the U.S. Treasury Department's sanctions list.
Related: https://www.meowdini.news/post/crypto-ai-alliances-on-the-rise-brainy-blockchains-or-bottomless-pits
The Power of Transparency (and Centralization)
While decentralized ledger technology (blockchain) allows for on-chain monitoring of funds, it's the centralized nature of stablecoins that empowers Tether to freeze assets on request. This highlights the ongoing debate surrounding the balance between decentralization and regulation in the crypto world.
Cointelegraph attempted to reach out to Tether for further details on the specific phishing scam but received no response at the time of publication.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in cryptocurrency carries significant risks. Always do your research before making any investment decisions.
Source: CoinTelegraph
Comments