Tether Assists in Major Crypto Money Laundering Bust with Dutch Authorities and U.S. Secret Service

Zach Anderson Sep 27, 2024 09:27

Tether aids Dutch FIOD, NHCTU, and U.S. Secret Service in dismantling cryptocurrency exchanges involved in money laundering.

In a significant collaborative effort, the Dutch Fiscal Information and Investigation Service (FIOD), the National High Tech Crime Unit (NHCTU) of the Netherlands Police, and the United States Secret Service successfully dismantled two major cryptocurrency exchanges suspected of facilitating money laundering activities. According to tether.io, Tether, a leading company in the digital assets industry, played a crucial role in this operation by actively assisting authorities and freezing substantial amounts of cryptocurrency.

Details of the Investigation

The exchanges, identified as Cryptex and pm2btc, were investigated for laundering funds tied to criminal activities, including ransomware attacks. These platforms enabled criminals to convert cryptocurrencies into national currencies through Dutch infrastructure. Initially separate investigations, the cases were merged and led by the FIOD with support from NHCTU and Amsterdam police’s cybercrime team.

Law Enforcement Collaboration

Law enforcement agencies, in collaboration with Tether and Chainalysis, managed to freeze cryptocurrency worth €7 million, marking a significant victory in the fight against financial crime. Tether also froze various wallets recently added to the Specially Designated Nationals (SDN) List in connection with Cryptex. These actions highlight Tether’s proactive efforts to secure the financial ecosystem and prevent the misuse of stablecoins. The FIOD, in its announcement, acknowledged Tether and Chainalysis for their “close” collaboration in securing these assets.

Tether’s Commitment to Security

Paolo Ardoino, CEO of Tether, emphasized the company’s dedication to supporting global law enforcement in combating the illicit use of cryptocurrencies. “Tether is unwavering in its commitment to support global law enforcement in the fight against the illicit use of cryptocurrencies. We strongly oppose any criminal exploitation of digital assets and pledge our continued collaboration with law enforcement agencies worldwide to uphold the security, trust, and integrity of the digital finance space,” Ardoino stated.

Track Record of Law Enforcement Support

Tether’s proactive approach to assisting law enforcement reflects its dedication to transparency and accountability in the cryptocurrency sector. To date, Tether has worked with over 180 law enforcement agencies across 45 jurisdictions and has blocked more than $1.8 billion in assets linked to illicit activities, aiding in the recovery of funds and protection of the broader financial ecosystem.

This operation underscores the importance of cooperation between private companies and law enforcement agencies in tackling financial crimes in the digital age.

Image source: Shutterstock

• tether
• cryptocurrency
• money laundering