Tether, the company behind the USDT stablecoin, has voluntarily frozen $225 million worth of USDT funds in response to an investigation by the U.S. Department of Justice (DOJ). The frozen funds are located in Southeast Asian wallets that are allegedly linked to “pig-butchering” romance scams.
In these scams, individuals establish relationships with victims online, gain their trust, and persuade them to invest in cryptocurrency platforms controlled by the scammers. Once the victims have invested a substantial amount of money, the scammers disappear with the funds.
Tether and OKX, another cryptocurrency exchange, are assisting the DOJ by freezing the funds associated with the wallets connected to an international human trafficking syndicate involved in these alleged scams.
Tether’s CEO, Paolo Ardoino, emphasized the company’s commitment to maintaining a secure environment and combating illicit activities in the cryptocurrency industry. All the frozen funds were held in external self-custodial wallets, as stated in the announcement.
Source: DAILYCOIN
