Tether Freezes $5.2M in USDT Linked to Phishing Scams as CEO Defends USDT

Tether, the world’s largest stablecoin issuer, recently froze $5.2 million worth of its USDT stablecoin linked to phishing scams.

The funds were stored in 12 Ethereum wallets tagged as “USDT Banned Address” by on-chain analytics firm SlowMist.

⚠️MistTrack Alert????

Just now, #Tether froze ~5.2 million $USDT on 12 addresses. These addresses are associated with addresses tagged as “USDT Banned Address” by #MistTrack.https://t.co/OzPQkfCehS pic.twitter.com/msAShbbl73

— MistTrack????️ (@MistTrack_io) May 14, 2024

This move is part of Tether’s ongoing efforts to combat illicit activities and cooperate with law enforcement agencies worldwide.

TLDR

• Tether froze $5.2 million worth of USDT stablecoins linked to phishing scams, stored in 12 Ethereum wallets labeled as “USDT Banned Address.”
• Tether has frozen over $1 billion in assets linked to illicit activities since its launch, working with law enforcement agencies across more than 40 countries.
• Tether CEO Paolo Ardoino defended the company against suggestions that USDT is a target of the U.S. government, responding to comments made by Ripple CEO Brad Garlinghouse.
• Tether has previously frozen assets linked to hacks, exploits, scams, and terrorist financing, leveraging the centralized nature of stablecoins to combat illicit activities.

Since its launch, Tether has frozen over $1 billion in assets linked to hacks, exploits, scams, and terrorist financing. The company has collaborated with 24 law enforcement agencies across more than 40 countries, responding to 198 requests to block wallets in the last 12 months and 339 in the last three years.

Tether’s proactive approach to freezing assets has drawn both praise and criticism.

While some appreciate the company’s efforts to combat illegal activities, others question the centralized nature of stablecoins and the power wielded by their issuers.

Recently, Tether CEO Paolo Ardoino took to social media to defend the company against suggestions that USDT is a target of the U.S. government.

An uniformed CEO, leading a company being investigated by the SEC, launching a competitive stablecoin (cui prodest), is being reported spreading fear about USDt.

Let me give you an update on Tether USDt ecosystem safety.

USDt is the most used stablecoin in the world, with…

— Paolo Ardoino ???? (@paoloardoino) May 13, 2024

His comments came in response to remarks made by Ripple CEO Brad Garlinghouse, who stated that the U.S. government is “going after Tether.”

Ripple, currently engaged in a lawsuit with the Securities and Exchange Commission, is also launching its own stablecoin, which will compete directly with Tether’s USDT.

Ardoino’s defense of Tether highlights the ongoing debate surrounding stablecoins and their role in the cryptocurrency ecosystem.

As regulators worldwide grapple with the challenges posed by digital assets, stablecoin issuers like Tether find themselves under increasing scrutiny.