Tether Freezes $225M USDT Feds Say Is Linked to Human Trafficking - Decrypt


20 Nov 2023 5:07 PM

Stablecoin giant Tether said Monday that it froze $225 million of its digital tokens to help feds investigate a human trafficking operation....

  • Tether, the issuer of the third-largest digital currency USDT, has frozen $225 million believed to be linked to a human trafficking syndicate in southeast Asia.
  • The funds were discovered through the collaboration of crypto exchange OKX, Tether, and blockchain analysis firm Chainalysis.
  • Tether aims to set a new standard for safety in the crypto space and has collaborated with the U.S. Department of Justice to freeze the funds.
  • USDT is a stablecoin backed by a stable asset and is used for quick trades without traditional banks or fiat currency.
  • Tether has faced controversy due to its lack of documentation and independent audits, and it agreed to cease operations in New York after an investigation.

The article highlights Tether's efforts to combat illegal activities and collaborate with authorities, which can be seen as positive. However, it also mentions the controversies surrounding Tether's lack of transparency and independent audits, which may have a negative impact on its reputation.

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What is Tether and what is its market position in the cryptocurrency industry?How did Tether discover the funds linked to the human trafficking syndicate?What actions did Tether take after discovering the funds?What is the purpose of USDT and how is it different from traditional currencies?What controversies has Tether faced and how has it responded to them?

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