Tether Says DOJ Confirmed Its Support in Freezing More Than $52 Million Tied to International Fraud Ring

Tether, the issuer of the USDT stablecoin, said it helped the U.S. Department of Justice crack down on an international digital-asset fraud network, resulting in the freezing of a large volume of digital assets.

According to Tether, the Justice Department recently froze more than $52 million in digital assets during an operation targeting international fraud and money-laundering organizations. The department said Tether actively cooperated in the investigation.

The operation targeted Xinbi Guarantee, a Chinese-language online marketplace. U.S. authorities believe Xinbi Guarantee used Telegram to operate fraud groups and money-laundering services, and to facilitate crypto-based money laundering and investment scams.

U.S. authorities seized about $12 million from two digital-asset wallets used by Xinbi Guarantee to receive payments from vendors. They also moved to freeze 47 wallets believed to be tied to money-laundering activity. As a result, the total value of digital assets frozen in a single day exceeded $52 million.

Paolo Ardoino, Tether's chief executive officer, said criminal groups cannot evade law enforcement simply by using digital assets. He also thanked the Justice Department for formally recognizing Tether's active role in the operation. Tether will continue working with law enforcement agencies worldwide to prevent its stablecoin from being used for illicit activity, he added.