May 22, 2024
Tether Halts $5.2M Linked to Phishing Scams
Latest Cryptocurrency News

Tether Halts $5.2M Linked to Phishing Scams

Tether, a major stablecoin issuer, took action on May 14 by freezing $5.2 million of its stablecoin, Tether (USDT), after it was associated with phishing scams. This USDT was discovered in 12 Ethereum wallets labeled as “USDT Banned Address.” SlowMist, an on-chain analytics firm, revealed that these addresses were being exploited for laundering funds from phishing scams, highlighting ongoing security concerns within the cryptocurrency space.

Source: MistTrack

Tether’s Ongoing Efforts Against Illicit Activity

Tether has a history of freezing assets linked to various illicit activities, including hacks, exploits, and scams. Since its inception, the company has blocked over $1.3 billion, with approximately $1.6 million tied to terrorist financing. Over time, Tether has actively expanded its blacklist, targeting Ethereum addresses holding substantial sums of USDT. Notably, in January 2022, three Ethereum addresses holding more than $150 million worth of USDT were added to the blacklist. Additionally, in October 2022, $8.2 million in USDT was frozen, accompanied by the blacklisting of 215 Ethereum-based USDT addresses.

Collaboration with Law Enforcement and Regulatory Measures

Tether has strengthened its collaboration with law enforcement agencies globally, engaging with 24 agencies across more than 40 countries. The company has responded to numerous requests from law enforcement, blocking wallets associated with illicit activities. Tether also provides secondary market controls to freeze activities linked to sanctioned individuals and entities listed by the United States Office of Foreign Assets Control. This proactive approach underscores Tether’s commitment to combating financial crimes and maintaining regulatory compliance within the cryptocurrency ecosystem.

By leveraging decentralized ledger technology, crypto firms like Tether can monitor on-chain transactions, while the centralized nature of stablecoins enables swift action against illicit activities. Despite these measures, challenges persist, as evidenced by the continuous emergence of new threats and scams within the digital asset space. Attempted to obtain comments from Tether regarding the banned addresses and their ties to phishing scams, but received no response.

Image by Flickr

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