- Tether works with law enforcement to block $4.2B in illicit crypto funds globally.
- Blockchain transparency helps authorities trace and freeze digital assets used in crimes.
- Tether launches gold-backed XAU₮, bridging digital tokens with real-world assets.
Tether, the issuer of the largest stablecoin USDT, is gaining attention after the Organization for Security and Co-operation in Europe (OSCE) highlighted its role in fighting human trafficking.
The report revealed that Tether helped freeze $225 million in illegal funds. It also shows how blockchain transparency is helping law enforcement track criminal activity.
OSCE Highlights Tether’s Role in Fighting Human Trafficking
Tether played a key role in the OSCE’s “Following the Money 2.0” report, which explains how criminals use digital currencies and how blockchain transparency helps track illegal activity. The report also notes that Tether’s compliance team helped draft the guidance and supported global investigations.
The OSCE added that while criminals use digital assets for speed and borderless transfers, the same features help authorities trace transactions faster and improve enforcement.
The report highlights how stablecoin companies can support law enforcement. Tether has helped freeze about $225 million linked to cybercrime.
The company can also freeze assets, destroy tokens, and return funds to victims or authorities, showing a clear process for tracking illegal activity. So far, Tether has blocked roughly $4.2 billion in illicit funds and worked with more than 340 law enforcement agencies across 65 countries.
Tether Strengthening Compliance in Digital Asset Ecosystems
According to Paolo Ardoino, the CEO of Tether, “Bad actors will always try to exploit new technologies, but the same technology can also be used to stop bad actors.” Blockchain’s transparency, together with coordination, facilitates the speeding up of investigations.
The OSCE noted that while criminals benefit from digital assets’ speed and borderless nature, these same features give authorities better tools when paired with enforcement measures.
Recently, Tether and Cycle froze an Ethereum wallet linked to Iranian exchange Wallex. The action affected about $117,000 in USDT, USDC, and smaller tokens. Wallex tried to move funds across chains to BNB Smart Chain, but on-chain data showed the funds remained idle.
Experts say the freeze likely reflects coordinated enforcement, even though Wallex has no official designation from the U.S. Treasury’s OFAC.
Audit and Expansion Efforts
Tether is also preparing a Big Four audit of its $185 billion USDT stablecoin. KPMG is reportedly leading the audit, while PwC is helping the company get its systems ready. The audit comes as Tether plans to expand in the U.S. and explore potential fundraising, aiming to address investor concerns about regulatory risks.
Additionally, Tether recently launched Tether Gold (XAU₮) on BNB Chain, letting users hold digital tokens backed by real gold. Each token represents one troy ounce stored in Swiss vaults, verified independently, and tradable instantly across 12 blockchains. Ardoino said, “People understand gold. They trust it because it has held value for millennia.”
Related: UK Targets Xinbi Crypto Network Linked to $19.9B Scam Infrastructure
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Source: https://coinedition.com/osce-highlights-tether-role-in-fighting-human-trafficking-4-2b-frozen/
