Tether has frozen $5.2 million in USDT tokens due to malicious phishing links.

Tether continues to closely monitor and penalize illicit activities on its platform. On May 14, it identified and froze USDT worth $5.2 million as part of its efforts to enforce stricter network controls and combat money laundering. Initial suspicions regarding these funds arose from blockchain tracking platform MisTrack. The frozen USDT were distributed across 12 Ethereum wallets that were flagged as “USDT Banned Addresses.” The company suspects these funds were laundered through numerous phishing schemes.Tether’s proactive measures to combat illicit activities within the cryptocurrency industry have been evident in recent events, showcasing their unwavering commitment to preserving the integrity and security of their network. In March 2024, Tether collaborated with the US Department of Justice (DoJ) and the Federal Bureau of Investigation (FBI) to seize $1.4 million worth of USDT from a tech support scam network.Tether actively monitors USDT addresses and takes definitive action to blacklist suspicious ones. In January 2022, they blacklisted three Ethereum addresses holding over $150 million in USDT. Further actions followed in October 2022, when $8.2 million in USDT was frozen on Ethereum, along with the addition of 215 Ethereum-based USDT addresses to the blacklist.Tether has displayed swift responsiveness to emerging threats. In late 2022, they froze over $360 million in assets associated with illicit activities and took action against USDT linked to terrorist activity in Ukraine and Israel, freezing $817,000 in October 2023. Additionally, in November 2023, $225 million in USDT associated with romance scams was frozen.To strengthen their monitoring capabilities, Tether has partnered with Chainalysis to develop tools for identifying wallets that pose risk or are connected to illicit or sanctioned addresses.Tether’s recent freezing of USDT coincides with a UN report classifying USDT as the preferred cryptocurrency for money laundering, leading to speculation of a potential US government investigation. Ripple CEO Brad Garlinghouse further fueled this speculation by claiming that the US government is targeting Tether. Tether CEO Paolo Ardoino responded by criticizing Garlinghouse’s lack of knowledge and suggesting that his comments were influenced by Ripple’s upcoming stablecoin, which could potentially compete with USDT.Tether has established collaborative partnerships with numerous law enforcement agencies across the globe. In the past year, they have responded to 198 requests to block wallets and 339 requests over the past three years. These collaborations have been instrumental in identifying and mitigating risks associated with illicit activities involving USDT.