Stablecoin issuer Tether took decisive action on May 14 by freezing $5.2 million in USDT linked to a phishing scam. These funds were held in 12 Ethereum wallets labeled as USDT Blacklisted Address. The chief security officer of Slomist disclosed that these addresses were used for laundering money obtained from phishing scams, though further details were not provided.
How Much Tether Has Been Frozen?
Globally, Tether has frozen billions of dollars in assets associated with various hacks and fraudulent activities. CEO Paolo Ardoino revealed in a post on X that the company has blocked over $1.3 billion since its inception, with around $1.6 million specifically tied to illegal crimes.
In January 2022, Tether blacklisted three Ethereum addresses holding over $150 million in USDT. By the end of 2022, they had frozen more than $360 million worth of assets. Notably, in October 2023, Tether froze $817,000 in USDT linked to illegal activities in Ukraine and Israel, followed by freezing $225 million in USDT related to another fraud case just a month later.
What Are Tether’s Recent Initiatives?
Tether has also been working closely with law enforcement agencies across 40 different countries. Over the past 12 months, the company has responded to 198 wallet blocking requests, bringing the total to 339 requests in the last three years. This collaboration underscores Tether’s commitment to combating illegal activities within the cryptocurrency space.
Key Takeaways for Users
- Tether has frozen billions in assets linked to hacks and fraud.
- In 2022 alone, over $360 million in assets were frozen.
- Recent actions include freezing $1.6 million related to illegal activities.
- Tether collaborates with law enforcement in over 40 countries.
- 339 wallet blocking requests were handled in the past three years.
By implementing secondary market controls, Tether can freeze activities related to individuals on the U.S. Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) list. This includes any companies or individuals controlled or owned by sanctioned countries. The use of decentralized ledger technology enables crypto firms to effectively monitor funds within their ecosystem, and the centralized nature of stablecoin projects allows issuers to freeze assets linked to illegal activities upon law enforcement requests.
