Tether Freezes $5.2M USDT Linked to Phishing Scams Amidst Industry Controversy

According to the crypto tracking platform MistTrack, these wallets have been linked to phishing scams, and the addresses were used to launder funds obtained through fraudulent activities.

Tether’s history of freezing suspicious accounts is extensive. The stablecoin issuer is known to proactive measures to maintain the integrity of its platform and block funds associated with various forms of criminal activity.

In January 2022, the company blacklisted three Ethereum addresses holding over $150 million in USDT. Later, in October 2022, Tether froze $8.2 million USDT on Ethereum and added 215 addresses to its blacklist. In October 2023, Tether targeted $817,000 USDT associated with terrorist activities in Ukraine and Israel. The following month, the company froze $225 million in USDT tied to romance scammers.

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In a recent social media post, CEO Paolo Ardoino highlighted that Tether has blocked over $1.3 billion worth of USDT, with approximately $1.6 million linked to terrorist financing.

Meanwhile, Ardoino has criticized Brad Garlinghouse, CEO of Ripple, for “spreading fear” about the stablecoin issuer while his company is involved in an investigation by the U.S. Securities and Exchange Commission and is also launching a competing stablecoin.  

Ardoino’s comments came after Garlinghouse stated in an interview on May 10 that the U.S. government is targeting Tether, and it could significantly impact the broader cryptocurrency environment. Garlinghouse pointed to allegations that Tether’s USDT was used by terrorist networks and sanctioned nations like Russia to circumvent U.S. economic sanctions.

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1. Tether Bolsters Inventory with $1 Billion USDT Token Release on Ethereum Blockchain
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3. XRP Price Drops Over 14% YTD, Amid Ripple’s Legal Battle With SEC

Ardoino emphasized Tether’s commitment to transparency and regulatory compliance, noting that these measures are crucial to safeguarding the cryptocurrency ecosystem.

Garlinghouse has also replied to Ardoino. He noted that he wasn’t attacking the stablecoin issuer but only pointing out that the U.S. government wants more control over dollar-backed stablecoin issuers, and Tether is in their line of sight because it is the biggest player in the industry. 

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