On November 20th, the issuer of the stablecoin USDT, Tether, and the cryptocurrency exchange OKX, collaborated with the U.S. Department of Justice (DOJ) to freeze $225 million linked to criminal organizations – a cross-border human trafficking network originating from Southeast Asia.
This $225 million freeze is the largest such action conducted by Tether to date. However, this incident serves as a positive signal, indicating that cryptocurrency companies can still comply with legal regulations, even though the crypto space lacks comprehensive legal frameworks. The transparency of blockchain technology also aids in tracking the flow of funds, making it easier to expose criminal activities.
Prior to this, Tether had frozen 32 addresses holding $873,118.34 related to illegal activities in Israel and Ukraine. Additionally, the company had seized around $835 million in assets, primarily associated with theft and other illicit activities.
Paolo Ardoino, the Chief Technology Officer of Tether, emphasized the company’s stance against the illegal use of cryptocurrencies. He also stated that the company aims to establish higher safety standards within the cryptocurrency industry.
“Through proactive cooperation with global authorities and a commitment to transparency, Tether seeks to set a new standard for the crypto industry. Our latest collaboration with the U.S. Department of Justice reaffirms our commitment to building a secure environment. We believe that, through technology and partnerships like the one with OKX, we can actively prevent criminal activities and maintain the highest industry standards.”
Paolo Ardoino, Chief Technology Officer of Tether
It’s worth noting that due to the market’s recovery, the market capitalization of USDT has been continuously growing, with a circulating supply of nearly $88 billion. Currently, Tether maintains its position as the largest stablecoin, with a market dominance rate of 70%.