Tether Takes Swift Action Against Suspicious Crypto Transfers

Tether, the issuer of the world's largest stablecoin, has recently taken decisive measures to address suspicious cryptocurrency transactions. In collaboration with blockchain intelligence firm Chainargos, Tether has blacklisted over 30 cryptocurrency addresses that had received billions of USDT (Tether's stablecoin). This action marks one of the most significant operations of its kind for Tether and underscores the company's commitment to maintaining the integrity of its stablecoin ecosystem.

The blacklisted addresses in question had collectively received approximately $161 million from Whitebit, a European cryptocurrency exchange with Ukrainian roots. Many of these addresses were associated with the transfer of STUSDT, a token distributed to users after staking USDT. Chainargos had previously identified a considerable number of wallets engaged in “programmatic spamming” operations involving small STUSDT transactions, a phenomenon initially observed in August.

To combat this suspicious activity, Tether initiated its actions on December 1 by freezing 28 of these addresses. Subsequently, on December 2, an additional six addresses were blacklisted after moving more than $10 million, with assets amounting to approximately $1 million. It is noteworthy that the frozen wallets were frequently linked to the movement of STUSDT.

Tether has not provided specific reasons for these actions, but it has been actively collaborating with the U.S. Department of Justice (DOJ) to freeze funds associated with potentially illegal activities. In November, Tether voluntarily froze $225 million that was linked to human trafficking groups operating in Southeast Asia, marking it as the “largest-ever freeze of USDT.”

Tether's USDT stands as the third-largest cryptocurrency by market capitalization and enjoys widespread usage for trading and value transfer within the crypto market. These recent actions reaffirm Tether's commitment to safeguarding the reputation and security of its cryptocurrency.

Tether and its sibling cryptocurrency exchange Bitfinex agreed to drop their resistance to a Freedom of Information Act (FOIL) request made by journalists, including Zeke Faux of Bloomberg Businessweek, earlier in November.

Tether stressed in an official company statement that this move is consistent with its commitment to openness. It should be highlighted, however, that this does not imply the publication of all internal papers, citing regular business processes.

Tether took issue with Zeke Faux's prior work, noting that it occasionally ventured beyond the boundaries of traditional professional journalism. Furthermore, Tether cited instances of “biased and factually inaccurate reporting” from several media outlets, including the Wall Street Journal and Bloomberg, whose journalists are part of the FOIL request.

It is crucial to note that this is not Tether's first interaction with a FOIL request. Previously, the business tried to deny a CoinDesk request for papers linked to Tether's reserves during an investigation by the New York Attorney General (NYAG) into whether USDT was completely backed by reserves. Following a legal struggle, Tether has decided not to appeal the ruling, instead expressing a desire to work with media and authorities that adhere to ethical reporting standards and protect privacy.

Finally, Tether's recent measures reflect its commitment to ensuring the security and integrity of its cryptocurrency ecosystem. The firm continues to work with appropriate authorities to address possibly criminal behavior while stressing openness and responsible journalism in its relationships with the media.

About Tether

Tether is the creator of the world's biggest stablecoin, USDT, and a pioneer in the cryptocurrency market. Tether aspires to deliver a trustworthy and stable digital currency that supports frictionless transactions in the global cryptocurrency market, with a dedication to transparency and security.