The U.S. Department of Justice (DOJ) has launched an investigation into a global human trafficking organisation operating in Southeast Asia, leading stablecoin issuer Tether to freeze $225 million worth of its own stablecoin.
For months, the inquiry was conducted using Chainalysis’s blockchain analysis tools. According to a press release, it is the biggest stablecoin freeze ever.
According to on-chain data, Tether frozen the $225 million spread over 37 wallets; the bulk of those tokens had earlier been moved to OKX, a cryptocurrency exchange that was also involved in the probe.
The “pig butchering” hoax, which the Federal Bureau of Investigation (FBI) claims cost American citizens $3.3 billion last year, is connected to the crime syndicate.
The press release further stated that the frozen tokens did not belong to Tether users and were being kept in self-custodied wallets.
“Tether aims to set a new standard for safety within the cryptocurrency space through proactive engagement with global law enforcement agencies and our commitment to transparency,” stated Paolo Ardoino, CEO of Tether.
32 crypto addresses connected to terrorism and hostilities in Israel and the Ukraine were also frozen by Tether last month.