Tether has taken a decisive stance against cybercrime. It recently froze $5.2 million in USDT linked to online scams.
This move shows Tether’s commitment to its stablecoin’s integrity amid scrutiny and security challenges.
Tether’s Actions to Curb Crypto-Related Crimes
MistTrack, a crypto-tracking platform by SlowMist, spotted the activities. It reported that Tether had frozen the USDT funds across 12 addresses. SlowMist’s Chief Information and Security Officer, 23pds, also confirmed the freeze.
“It looks like Tether froze the phishing gang’s money laundering address,” he stated.
Read more: 15 Most Common Crypto Scams To Look Out For
This action is not new for Tether. BeInCrypto previously reported that in November 2023, it froze $225 million in USDT tied to a Southeast Asian human trafficking syndicate. This action also marked the largest crypto freeze in history.
Tether emphasizes its commitment to transparency and accountability. Tether told BeInCrypto that the company exhibits strong risk management practices, with 90% of its tokens backed by cash and cash equivalents and a substantial profit reported for the first quarter of 2024.
“Tether has consistently met its obligations to clients, even during market volatility. Its resilience and reliability set an industry standard,” Tether added.
Despite its efforts, Tether often faces criticism. Through its report, Deutsche Bank recently questioned the stability and transparency of Tether’s operations.
The bank also cited past regulatory challenges. Such scrutiny fuels the debate about stablecoins’ reliability in the financial ecosystem.
Moreover, other reports indicate that terrorist organizations and sanctioned countries sometimes exploit Tether’s USDT. They use it to bypass US financial restrictions.
Furthermore, US Treasury Deputy Secretary Adewale Adeyemo testified before the Senate Banking Committee in April. He highlighted Russia’s use of alternative payment methods, including Tether’s USDT, to evade economic sanctions.
Yet, Tether’s proactive efforts have not kept it from controversy. Tether CEO Paolo Ardoino and Ripple CEO Bradley ‘Brad’ Garlinghouse recently clashed publicly.
Read more: How to Buy USDT in Three Easy Steps – A Beginner’s Guide
During an episode of the World Class podcast, Garlinghouse claimed the US government was targeting Tether. He suggested it faced undue scrutiny.
In response to the statement, Ardoino accused Garlinghouse of spreading “fear, uncertainty, and doubt” (FUD). He saw that this statement stemmed from Ripple’s plan to enter the stablecoin market.
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