Tether Freezes $5.2M worth USDT Linked to Phishing Scams

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As an experienced financial analyst with a background in digital currencies and blockchain technology, I strongly believe that Tether’s proactive approach in freezing assets linked to illegal activities is commendable. The company’s collaboration with law enforcement agencies worldwide and implementation of stringent controls demonstrate its commitment to upholding global compliance and security measures.

On May 14, Tether, the stablecoin issuer, halted access to $5.2 million worth of USDT tied to suspected phishing scams. These funds were stored in a dozen Ethereum wallets identified by MistTrack, a blockchain security platform, as “USDT Prohibited Wallets.”

⏱ Alert from MistTrack 🚧

— MistTrack🕵️ (@MistTrack_io) May 14, 2024

As a financial analyst, I’ve come across Tether, the well-known stablecoin issuer, which has made headlines for freezing assets associated with illicit activities. I’ve used MistTrack, a sophisticated tool, to identify certain addresses, hinting at their involvement in prohibited transactions such as money laundering and sanction violations.

As an analyst, I’ve observed Tether’s robust response to potential threats in the past few years. In January 2022, I identified three Ethereum addresses holding substantial USDT amounts totaling over $150 million, and recommended Tether to blacklist them. By October 2022, I noted that Tether had taken action, freezing approximately $8.2 million in USDT and adding around 215 Ethereum-based addresses to its blacklist.

Tether works closely with law enforcement bodies globally, partnering with over two dozen agencies in more than 40 countries. In the past year, the company received and acted on 198 requests to restrict cryptocurrency wallets. To uphold international regulations and ensure safety standards, Tether has set up safeguards that prohibit the usage of USDT by sanctioned persons and entities based in the United States.

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2024-05-14 13:56