SlowMist, a blockchain analytics firm, revealed that 12 Ethereum addresses containing disabled Tether (USDT) were implicated in the freeze. These wallets, marked as “USDT Banned Address,” were flagged by a SlowMist security researcher who noted potential ties to an on-chain criminal group.
Phishing runs rampant in the crypto world, where malicious actors mimic authentic platforms or dApps to steal private keys and compromise wallets.
Despite ongoing attacks by scammers, security experts observe that both users and platforms have fortified their defenses. CertiK reports that last month saw the lowest losses to scams and phishing hacks since 2021, with bad actors managing to pilfer only $25.7 million in April.
Tether’s centralized nature could aid in combating illegal wealth
Typically, freezing stolen cryptocurrency presents challenges due to the decentralized nature of many entities, which often prioritize resistance to censorship. However, in situations like these, Tether’s centralized design could play a role in curbing criminal behavior.
This isn’t the stablecoin issuer’s initial intervention. Back in March, Tether took action by blacklisting four addresses containing over $20 million in USDT, aiming to counter criminal misuse of its stablecoin.
In response to accusations from the United Nations accusing the USDT operator of negligence, the company pledged to strengthen its efforts against illicit activities. Tether further expressed its commitment to expanding scrutiny on illicit cryptocurrency transactions conducted through stablecoin channels in a letter to U.S. lawmakers.
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