Tether Freezes Millions of Dollars in Crypto from Possible Fraud. Here Are All The Details

Tether Freezes Millions of Dollars in Crypto from Possible Fraud. Here Are All The Details
Table of Contents


  • Tether Freezes Funds: Tether has frozen 5.2 million USDT tokens linked to 12 Ethereum addresses suspected of money laundering by phishing groups, highlighting increased security measures in the crypto space.
  • Historic Actions: This is part of a series of proactive freezes by Tether, including a past collaboration with OKX that led to the “largest-ever freeze of USDT” involving over 225 million tokens associated with a human trafficking group.
  • Ongoing Vigilance: Tether’s decisive actions, such as freezing wallets on the OFAC SDN List, demonstrate the firm’s commitment to disrupting money laundering and protecting the integrity of the cryptocurrency ecosystem.

Tether, the company behind the world’s largest stablecoin by market capitalization, has frozen a substantial amount of USDT tokens. The action was taken following the identification of 12 Ethereum addresses that may be linked to money laundering operations conducted by phishing groups.

MistTrack, a crypto tracking and compliance platform, reported a freeze that affected 5.2 million USDT tokens. According to their announcement on social media platform X, these specific addresses were labeled as “USDT Banned Address” within their system. The immobilization of these tokens raises concerns about security and compliance in the crypto space. 

This preventive measure by Tether is not an isolated incident. In the past, the stablecoin issuer has collaborated with digital asset trading platforms like OKX to execute what was termed the “largest-ever freeze of USDT in history.” 

During this operation, over 225 million USDT tokens connected to 37 wallets were frozen, with the funds being associated with a human trafficking group.

Tether’s Commitment to Crypto Ecosystem Integrity

Tether Freezes Millions of Dollars in Crypto from Possible Fraud. Here Are All The Details

Additionally, the issuer of the stablecoin took action in December 2023 by freezing 41 wallets that were under the control of individuals listed on the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) List. 

It’s noteworthy that cryptocurrency companies have been proactively immobilizing addresses linked to fraudulent activities and cyber criminals. In line with previous reports, exchanges such as Binance and Huobi secured assets valued at $1.4 million, which were connected to the Lazarus Group’s Harmony Bridge theft that occurred in June 2022.

The common practice among attackers involves withdrawing stolen funds to another platform and using crypto mixers to obscure the trail of money, making it challenging to trace and recover. By freezing the assets, Tether and other crypto firms aim to disrupt these laundering processes and deter future fraudulent activities.

As the crypto industry continues to evolve, the commitment of companies like Tether to safeguard their ecosystems is crucial. These measures not only protect investors but also contribute to the overall stability and credibility of the cryptocurrency market.


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