Tether Freezes USDT Worth IDR 3.5 Trillion Owned By Human Traffic Syndicate

Tether, a USDT stablecoin publishing company, tracks funds belonging to a human trafficking syndicate in the Southeast Asia region. (Photo; Doc. Dchained)

JAKARTA - Tether, the issuer of USDT stablecoins, has frozen 225 million USDT tokens worth IDR 3.5 trillion (US$ 225 million) which allegedly belonged to international human trafficking syndicates in Southeast Asia. This is the largest USDT freeze in history, as part of an attempt to fight criminals who take advantage of crypto assets.

USDT is a stablecoin whose value is tied to US dollars. Currently, USDT has a global market capitalization of $87.7 billion (Rp1,353 trillion), making it the largest stablecoin in the world.

The USDT freeze was carried out based on investigative results involving Tether, the OKX crypto exchange, the US Department of Justice, and the US Secret Service. They used tools from Chainalysis, a blockchain analysis firm, to track the location of illegal funds on crypto networks.

Tether confirmed that the frozen wallet does not belong to its customers, but rather the wallet purchased in the secondary market. Furthermore, Tether promised to cooperate with law enforcement and the legal wallet owner to disburse their assets if they are affected by the freeze.

In addition to freezing USDT belonging to a human trafficking syndicate, Tether has also frozen funds at 32 crypto addresses linked to terrorism and war in Israel and Ukraine. Since November last year, Tether has helped 31 institutions in 19 jurisdictions to freeze assets worth $835 million.

Tether also follows strict Information Your Customer (KYC) and Anti Money Laundering (AML) protocols. His compliance team conducted a thorough screening of all USDT holders to prevent the involvement of sanctioned entities. Tether also collaborates with law enforcement to investigate suspicious transactions in the secondary market.

Tether CEO Paolo Ardoino said criminals who use crypto for illegal activities will not escape surveillance. "We expect continuous cooperation with law enforcement agencies as part of our commitment to global security and financial integrity," he said.

Ardoino also believes that working with industry players can help create a more secure crypto environment. "Through proactive engagement with global law enforcement agencies and our commitment to transparency, Tether aims to set new standards for security in crypto space," said Ardoino.

Jason Lau, Chief Innovation Officer of OKX, also expressed support for this collaborative effort. He said that the exchange would remain proactive in contributing to such investigative efforts. "Collaborating with industry stakeholders, including law enforcement agencies, is the main principle of our approach to building trust and serving the public interest as a leader in the crypto industry," Lau said.