Tether Helps Brazil Freeze R$32M in Major Cybercrime Crackdown

Highlights:

• Tether helps Brazil freeze R$32M in USDT in Operation Magna Fraus in Brazil.
• Brazilian authorities discovered a personal key involved in the crypto laundering operation.
• Over 5,000 crypto wallets have been blocked by Tether, aiding global crime investigations.

Brazilian law enforcement officials have dismantled a major money laundering operation using digital assets. On July 15 and 16, Operation Magna Fraus was conducted against a criminal network operating in Goi and Par. This gang is said to have laundered stolen money through Brazil’s PIX system and converted it into crypto.

As stated in the announcement, authorities, with the help of Tether, they froze R$32 million in USDT and seized another R$5.5 million worth of digital assets. The procedure entailed the use of arrest and search warrants at multiple sites. A private key was also retrieved by investigators, providing them with access to wallets that were connected to stolen funds.

In addition, these assets were swiftly transferred to government-controlled custody. The case will proceed legally under the criminal court of São Paulo, which specializes in financial crimes. The funds confiscated will be liquidated and confined in a court account pending further legal procedures.

Tether Recognized for Assisting Brazilian Authorities in Blocking R$32 Million Tied to Major Money Laundering Scheme.

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— Tether (@Tether_to) July 18, 2025

Tether’s Tech Role in Fighting Financial Crime

Tether’s role in this operation extended beyond technical support. The firm offered advanced tracking systems, which enabled the Brazilian authorities to monitor the flow of USDT in real time. This swift cooperation was instrumental in freezing the funds before they could be transferred any further.

Tether CEO Paolo Ardoino hailed this partnership. He stated that the capacity of Tether to monitor transactions and freeze tokens associated with crime is what makes it different from traditional finance. He reaffirmed the role of the company in assisting in preventing stablecoin misuse. Ardoino continued, stating that cooperation with authorities is a high priority for Tether. He emphasized the importance of digital asset companies in assisting law enforcement agencies in combating cross-border financial threats. The firm continues to work with agencies worldwide and responds promptly when required.

Moreover, this recent initiative in Brazil is part of the growing list of international enforcement cooperation. In 2024, Tether froze $29.62 million in USDT linked to the Cambodian Huione Group. In January this year, the company aided the U.S. Secret Service in seizing $27 million from the sanctioned trading platform Garantex. Furthermore, $9 million associated with the Bybit hack was frozen.

Tether’s Expanding Reach Boosts Law Enforcement Power

Currently, Tether cooperates with 275+ law enforcement agencies in 59 regions. In addition, it has assisted in freezing over 5,000 wallets, with over half being done in collaboration with the U.S. authorities. Such initiatives demonstrate the role of a private company in combating cyber-based crime.

Operation Magna Fraus also demonstrated how the transparency of blockchain may be used to speed up financial investigations. In contrast to traditional systems, authorities can trace the funds involved in transactions in blockchains publicly and in real time. Such an ability also resulted in the rapid recovery of assets in the Brazilian raids. The active policy of wallet freezing by Tether aligns with international compliance demands. This involves compliance with the OFAC SDN list and regulations by national agencies. These activities are consequently transforming the way stablecoins function within legal systems.