The world’s largest digital currency exporter announced it would freeze approximately $4.2 billion in digital currencies related to activities it deemed “illegal.”
According to Reuters, Tether said the decision to freeze takes into account intensified global efforts to combat crime related to crypto assets, with the majority of these amounts, approximately $3.5 billion, being frozen from 2023 as regulatory efforts intensify around the world to better control digital currency markets.
Tether is the largest issuer of stablecoins, and the trading volume of the Tether currency, which is pegged to the US dollar, now exceeds $180 billion, compared to approximately $70 billion just three years ago, reflecting the rapid growth in global usage.
The company acknowledged that it has the technical ability to remotely freeze digital currencies in users’ e-wallets upon request from law enforcement authorities.
In this regard, Tether revealed this week that it helped the US Department of Justice freeze approximately $61 million in USDT currency related to a scam known as “Romance Slaughter.” This scam is a scam that relies on building a personal relationship with the victim before luring them financially.
The company previously announced a ban on digital wallets related to human trafficking crimes, as well as activities related to “terrorism and armed conflict” in Israel and Ukraine.
In this context, a sanctioned Russian crypto trading platform reported last year that Tether blocked funds on its platform.
International regulators have long expressed concerns about virtual currencies being used to finance illegal activities. Last year, the Financial Action Task Force called on countries to take tougher measures to combat financial crime in digital asset markets, which are still less regulated than traditional financial markets.
According to researchers in the field of blockchain analysis, Gaslo received at least $82 billion in crypto funds in the past year, compared to just $10 billion in 2020, a jump that has contributed to the increased activity in Chinese-speaking groups.
Stable currencies are primarily used for trading operations within the digital currency market, and their trading volume has increased significantly in recent years due to the significant expansion of the global crypto asset market.
