Tether recently took action to freeze a total of $29.62 million in USDT tokens, which are closely related to the suspected criminal activities of the Cambodian Huione Group. This action reflects Tether's firm determination to protect the security and reputation of its USDT stablecoin. It is worth noting that although Tether has frozen the relevant address, the illegal activities of the address have not completely stopped, and the USDC stablecoin of Circle is still being transferred.
On July 13, stablecoin issuer Tether executed a freeze on 29.62 million USDT tokens involved in Cambodia's Huione Group, a measure taken against the backdrop of the group's alleged criminal activities. Tether's move not only demonstrates its maintenance of the integrity of stablecoins, but also reflects its proactive response strategy in the face of increasing regulatory scrutiny.
Although Tether has frozen the USDT tokens involved in the case, the illegal fund flow to the relevant address has not been completely curbed, and Circle's USDC stablecoin is still being transferred under this address.
The reason why Tether freezes USDT tokens
A report by blockchain security firm Bitrace revealed that the USDT tokens held in the "TNVaKW" wallet associated with the guarantee business of Cambodia's Huione Group were frozen. The wallet was activated on July 9, 2024, and was frozen by Tether just one week later.
Bitrace said that the reason why the "TNVaKW" wallet was frozen may involve assisting money laundering, and these funds may be used for illegal activities such as fraud and cryptocurrency theft. Although the USDT tokens in the wallet have been frozen, the illegal activities of the address do not seem to have stopped completely, and the USDC stablecoin of Circle is still being transferred.
According to Bitrace, the Huione Group transferred 114,800 USDC from the frozen TNVaKW address to the newly activated TQuFSv address.
However, the freezing action was limited to the specific addresses involved, and other business addresses of the Huione Group were not affected and can still operate normally. Bitrace also added that other related business addresses of Huione, such as TL8TBp, have been conducting guarantee and payment operations in the past six months, and these addresses have not been frozen.
Tether’s freeze follows a report that Huione Guarantee, part of the Huione Group, a conglomerate with ties to Cambodia’s ruling Hun Sen family, has become an online marketplace favored by scammers.
According to foreign media reports, since 2021, the crypto wallets used by Huione Guarantee and its merchants have received more than US$11 billion, with Tether's USDT playing an important role in these transactions.
Tether’s freeze is consistent with its firm stance against illegal use of its assets. Over the past year, Tether has frozen a large amount of USDT, including $5.2 million in May related to phishing scams and $225 million last year related to a Southeast Asian human trafficking ring.
Despite these steps, Tether continues to face criticism and allegations that its tokens are being used for illegal activities. Recently, Ripple CEO Brad Garlinghouse hinted that the U.S. government may launch an investigation into Tether, but Tether CEO Paolo Ardoino strongly denied the claim.
Conclusion:
Tether's freezing of USDT tokens highlights its proactive stance in maintaining digital currency security and combating illegal financial activities. Despite continued criticism and possible regulatory pressure, Tether has demonstrated its commitment to preventing assets from being used for illegal purposes through practical actions.
This incident also reminds the entire industry that the security and compliance of stablecoins are key to the healthy development of the digital currency ecosystem. As the cryptocurrency market continues to mature, more similar regulatory and security measures are expected to emerge in the future to protect consumer interests and enhance the overall trust of the market. #Tether #加密犯罪活动 #冻结USDT