Tether froze $5.2m USDT from suspected scammers

Stablecoin issuer Tether has frozen approximately $5.2 million worth of USDT in addresses believed to be operated by phishing scammers.

Blockchain analytics store SlowMist reported It was stated that 12 Ethereum addresses whose Tether (USDT) assets were disabled were included in the freezing. Each wallet was labeled “USDT Banned Address,” and the SlowMist security researcher said the funds appeared to be associated with a chain crime ring.

Phishing is quite common in the crypto space, with bad actors impersonating original platforms or dapps to steal private keys and compromise wallets.

Scammers continue to launch attacks, but security experts say users and platforms have developed strong defenses against these scams. Last month was the lowest loss from fraud and phishing attacks since 2021, according to CertiK. According to reports, bad actors were able to steal only $25.7 in April.

Centralizing Tether could help fight illicit wealth

Stolen crypto wealth is often difficult to freeze, as decentralized organizations may adopt an extremely censorship-resistant model. In such cases, Tether’s centralized structure can help prevent criminal activity.

This is also not the first time the stablecoin issuer has intervened. In March, Tether blacklisted four addresses holding more than $20 million in USDT as part of a crackdown on criminal use of the stablecoin.

The company has vowed to strengthen its operations against illegal activities following allegations from the United Nations over alleged negligence on the part of the USDT operator. In a letter to US lawmakers, Tether also confirmed its intention to expand its interest in illicit crypto transactions conducted through stablecoin corridors.