Highlights:
- Tether froze a TRON wallet containing $29.62 million in USDT linked to the Cambodian Huione Group.
- The freeze was due to the wallet’s involvement in laundering funds for criminal activities like fraud and crypto theft.
- Despite the freeze, the implicated address continued to move USDC stablecoins to a new address.
Tether, the prominent stablecoin issuer, has taken decisive action by freezing a TRON wallet containing $29.62 million in USDT tokens. This significant move on July 13 reflects Tether’s commitment to maintaining the integrity of its USDT stablecoin, especially under increasing regulatory scrutiny. The frozen address is part of the Cambodian Huione Group’s guarantee business, and it is suspected of being involved in criminal activities and crypto money laundering.
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Details of the Freezing Action
According to blockchain security firm Bitrace, the TRON wallet, identified as TNVaKW, was activated on July 9, 2024. Blockchain security firm Bitrace reported that this wallet was linked to Cambodian Huione Group’s guarantee business. Bitrace’s analysis suggests that the freeze is due to the wallet’s involvement in laundering funds for criminal activities such as fraud and crypto theft.
📢The 29.62 million USDT addresses frozen are addresses related to the guarantee business of the Cambodian Huione Group that month.（1/n）
more details👇 https://t.co/s5AVUZD6sC pic.twitter.com/tzLyZa04m7
— Bitrace (@Bitrace_team) July 14, 2024
Despite the freeze, the implicated address continued to move funds. The Cambodian Huione Group transferred 114,800 USDC from the frozen TNVaKW address to a newly activated TQuFSv address. Notably, Huione’s old business address, TL8TBp, remains operational, and Huione’s other business addresses are unaffected by the freeze, with none of them frozen over the past six months.
Bitrace provided additional context to the freezing action. They noted that Huione Group’s involvement in laundering funds for criminal activities prompted restricting the TRON wallet. Bitrace also warned Web3 practitioners to remain vigilant about transaction risks when engaging in crypto payment businesses, emphasizing the importance of compliance and due diligence to avoid potential legal and financial repercussions.
This action by Tether highlights the ongoing efforts to combat cybercrimes within the crypto space. Tether has previously frozen several other crypto wallets, including those on the Ethereum network. On May 8, Tether announced the freezing of an Ethereum wallet holding $100,000,090.15 in USDT.
0x661be0562b31e9e8ddc2a7c93803005a1c71d749
Timestamp: 13.01.2022, 16:26:09 UTC
Event: AddedBlackList
Balance: 100,000,090.15 USDT (ERC20)https://t.co/vAyCrUe71p— USDT/USDC Ban List (@USDTBanList) May 8, 2024
Continued Vigilance in the Crypto Space
The freezing of the TRON wallet underscores Tether’s dedication to preventing the misuse of its stablecoin in illicit activities. The company faces ongoing criticism and allegations that its tokens finance criminal activities. However, actions like these demonstrate Tether’s proactive measures to ensure the integrity of its stablecoin amid increasing regulatory scrutiny.
Ripple CEO Brad Garlinghouse recently hinted at a possible US government investigation into Tether, a claim strongly denied by Tether CEO Paolo Ardoino. Despite these allegations, Tether continues to take steps to maintain trust and compliance within the crypto industry.
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