Tether Freezes Almost 30 Million USDT Linked to Criminal Activities

Tether took froze 29.62 million USDT tokens associated with criminal activities involving Cambodia's Huione Group.

This move underscores Tether’s commitment to upholding the integrity of its stablecoin amidst heightened regulatory scrutiny.

The frozen tokens were held in a wallet identified as “TNVaKW,” which Bitrace, a blockchain security firm, linked to Huione Group’s guarantee business involved in potential fund laundering for fraud and crypto theft. The wallet was frozen shortly after becoming active on July 9, 2024.

📢The 29.62 million USDT addresses frozen are addresses related to the guarantee business of the Cambodian Huione Group that month.（1/n）

more details👇 https://t.co/s5AVUZD6sC pic.twitter.com/tzLyZa04m7

— Bitrace (@Bitrace_team) July 14, 2024

Despite the freeze on the TNVaKW address, Huione Group continues to transact with USDC stablecoins. Bitrace disclosed that Huione transferred 114,800 USDC to a newly activated TQuFSv address following the freeze.

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Bitrace clarified that while TNVaKW remains frozen, Huione’s other business addresses, such as TL8TBp, are operational and have not been affected. These addresses have been involved in guarantee and payment services over the past six months.

Huione Group, a part of the Cambodian conglomerate linked to the ruling Hun family, has drawn attention for its Huione Guarantee platform, described as a popular marketplace for scam operators. According to BeInCrypto, transactions involving Tether’s USDT on this platform have totaled over $11 billion since 2021, with many suspected to be linked to fraudulent activities.

Tether’s decision to freeze these tokens aligns with its proactive stance against misuse of its assets. In recent months, Tether has frozen substantial amounts of USDT associated with various illicit activities, including phishing scams and human trafficking syndicates. Despite these efforts, Tether continues to face scrutiny and accusations regarding the misuse of its stablecoin tokens, with ongoing debates in the crypto community and allegations of regulatory investigations.

Alexander Stefanov