Tether & OKX Cracks Down on $225M Romance Scam Ring in Record USDT Freeze

  • November 21, 2023

In a stunning move revealing the underbelly of cryptocrime, stablecoin firm Tether has frozen $225 million in USDT allegedly stolen by an international human trafficking ring. Working closely with the Department of Justice and crypto exchange OKX, Tether traced and paralyzed wallet funds connected to a Southeast Asian syndicate running “pig butchering” romance scams globally.


Tether froze $225 million in stolen USDT linked to an international human trafficking syndicate running “pig butchering” romance scams
The move came after an investigation by Chainalysis and cooperation with the DOJ and crypto exchange OKX
This is the largest ever freeze of USDT and paralyzed a major criminal operation
Tether has worked with law enforcement before to freeze illegal funds from terrorist financing and other crimes
Crypto romance scams are growing rapidly, with $2.57 billion lost in 2022 according to FBI data

The collaborative crackdown represents the largest freeze of Tether’s USDT stablecoin in history. It also spotlights the alarming growth of crypto-based romance scams, which prey on unwitting victims’ emotions to siphon investment funds. Reports indicate over $2.5 billion was lost to crypto investment frauds last year, much of it tied to the cruel pig butchering scheme.

In this scam, fraudsters nurture an online relationship with the victim before convincing them to “invest” in a bogus trading site the scammers control. Once sufficient funds are drained, the criminals disappear without a trace. Tether’s freeze of the $225 million in USDT linked to 37 external crypto wallets suggests the staggering scale of this devious operation.

The move reflects Tether and OKX’s growing cooperation with law enforcement to root out crypto-based criminal activity. Advanced blockchain tracking tools from Chainalysis assisted in following the flow of the stolen funds. Tether has also worked to freeze assets associated with terrorist financing in Ukraine and Israel.

For the crypto industry, theHigh-profile takedown signals an alignment of interests between exchanges, stablecoin operators, and global authorities. As adoption spreads, preventing ecosystem exploitation by black-hat hackers and profiteering scammers grows more critical. Still, the persistence of pig butchering scams using social engineering tactics raises consumer protection concerns that exchanges must address.

Ultimately, Tether’s disruption of a $225 million scam syndicate underscores cryptocurrency’s transparency as an asset class. While misuse persists, the capacity to trace illicit wallet flows allows justice to be served. As safeguards and collaboration with officials improve, the potential to sanitize crypto from criminal abuse heightens – helping secure its future as a trusted payments innovator.

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