Tether Has Helped Recover Over $108 Million in Illicit USDT Since 2014

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Key Takeaways

Tether has assisted 145 law enforcement agencies in recovering over $108.8 million worth of USDT linked to illegal operations across 40 jurisdictions.
Tether has restricted access to over 1,900 cryptocurrency wallets worldwide linked with suspicious activities.

Since its launch in 2014, Tether, the issuer of the stablecoin USDT, has collaborated with law enforcement agencies globally to address illicit activities involving its digital currency. According to a recent statement, Tether has assisted more than 145 law enforcement agencies in recovering over $108.8 million worth of USDT linked to illegal operations across 40 jurisdictions.

Tether has taken proactive steps to enhance the security of its platform by restricting access to over 1,900 cryptocurrency wallets worldwide associated with suspicious activities.

Tether CEO Paolo Ardoino emphasized the company’s commitment in an August 23 statement: “Tether remains resolute in its mission to support global law enforcement efforts in combating illicit uses of cryptocurrency. We unequivocally condemn the misuse of USDT or any cryptocurrency for criminal activities. We are fully dedicated to our continued collaborative efforts with law enforcement to combat fraud.”

One notable instance of Tether’s involvement includes assisting the United States Department of Justice (DOJ) in seizing approximately $5 million in USDT from scammers involved in a “pig-butchering” scheme.

The DOJ described these schemes in an August 22 statement, noting that the platforms often display fictitious investment portfolios with high returns to entice victims into investing more. The successful seizure of these funds is seen as a significant step in combating cyber-enabled fraud.

In addition to working with the DOJ, Tether has collaborated with other international authorities. The company partnered with the DOJ and cryptocurrency exchange OKX to freeze $225 million in USDT connected to a Southeast Asia-based criminal organization involved in romance fraud.

Tether also worked with Israel’s National Bureau for Counter Terror Financing to freeze approximately $873,000 worth of USDT, which was believed to have been used to support terrorist activities in Israel and Ukraine.

Crypto exploits are becoming increasingly common in the Web3 space. As per a PeckShield report, in July alone 16 crypto hacks resulted in approximately $266 million in losses