Tether freezes $28m in USDT linked to Cambodian fraud

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As a researcher with a background in blockchain forensics, I find the recent developments surrounding Huione Group and its alleged involvement in money laundering and fraud through the use of stablecoins like Tether (USDT) particularly intriguing. The freezing of the wallet TNVaKW containing over 28 million USDT by Tether is a significant step towards disrupting these illicit activities.

According to reports, Tether has allegedly seized a TRON wallet holding over 28 million USDT tokens, believed to be the ill-gotten gains from criminal acts such as money laundering and fraud.

As a financial analyst closely monitoring real-time developments in the Tron and Ethereum (ETH) stablecoin market, I’d like to share an update based on recent findings from an account dedicated to this purpose. On July 13, they reported that a specific address, which I identify as TNVaKW, has been added to the USDT ban list maintained by Tether. The blacklisted address holds approximately $28.25 million worth of USDT.

At 23:21:36 UTC on July 12, 2024, an event occurred labeled “Added Blacklist.” The balance associated with this transaction was equivalent to 28,257,162.94 USDT tokens based on the TRC20 standard.

— USDT/USDC Ban List (@USDTBanList) July 12, 2024

The wallet under suspicion is connected to the Cambodian corporation, Huione Group, according to Bitrace’s disclosure on X published on July 14. This wallet, which became active on July 9, is revealed to be linked to Huione Group’s Guarantee sector in their business dealings.

📢The 29.62 million USDT addresses frozen are addresses related to the guarantee business of the Cambodian Huione Group that month.（1/n）

more details👇

— Bitrace (@Bitrace_team) July 14, 2024

According to Bitrace’s investigation, it appeared that Huione was trying to circumvent the freeze by using a fresh address, TQuFSv, to move $114,800 worth of USDC from the blocked TNVaKW wallet.

According to Bitrace’s report, although Tether took action against Huione, their other business addresses, such as TL8TBp, continue to function.

Huione Guarantee linked to crypto scams

July 10 saw Elliptic, a well-known crypto-tracking company, disclose information about Huione Guarantee being implicated in deceitful practices, specifically in relation to pig-butchering scams.

An examination conducted by the Elliptic research team reveals insights about the popular online marketplace, Huione Guarantee. This platform is frequently utilized by swindlers based in South East Asia, among whom are those implicated in #pigbutchering scams. For further information, check out the comprehensive analysis ➡️

— Elliptic (@elliptic) July 10, 2024

In Southeast Asia, the online marketplace identified as Elliptic has gained notoriety as a significant platform for fraudulent activities, with confirmed involvement in illicit deals amounting to over $11 billion.

Elliptic asserted that the Cambodia-based firm functions as a depository and intermediary for peer-to-peer transactions on Telegram, predominantly utilizing Tether’s USDT stablecoin. Reportedly, this has made it an attractive choice for swindlers and money launderers.

Additionally, the blockchain investigation company claimed a link between Huione Guarantee and Cambodia’s powerful elite, specifically the country’s prime minister, Hun Manet.

Following the release of the report, authorities and blockchain specialists have initiated efforts to thwart Huone’s activities by monitoring cryptocurrency transactions and pinpointing wallets associated with the platform.

The freeze on Tether underscores ongoing initiatives to curb crypto-related deceit and the complex network of financial wrongdoing perpetuated through supposedly reputable cryptocurrency intermediaries.

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2024-07-14 19:30