Tether Freezes $29.62M USDT Linked to Cambodian Huione Group

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CONTENT

Stablecoin issuer takes action against suspected criminal activities and crypto money laundering, as Bitrace reveals Huione’s attempts to circumvent the freeze and warns of ongoing transaction risks in Web3 space.

In a significant move against suspected criminal activities and crypto money laundering, Tether, the prominent stablecoin issuer, has frozen a TRON wallet containing $29.62 million in USDT tokens. The action, taken on July 13, targeted the wallet address TNVaKW, which is believed to be linked to the Cambodian Huione Group.

Bitrace, a leading provider of compliance and investigative tools for law enforcement agencies, has provided crucial insights into the freeze. According to their analysis, the frozen address is connected to Huione Group’s guarantee business, which was activated on July 9, 2024. However, the company is reportedly attempting to circumvent the freeze by activating a new business address, TQuFSv, and transferring $114,800 USDC from the frozen TNVaKW address.

The situation highlights the ongoing cat-and-mouse game between crypto firms and those involved in illicit activities. Bitrace noted that Huione’s old related business address, TL8TBp, remains operational, and the company’s other guarantee and payment businesses have been active over the past six months, with none of the relevant addresses frozen.

Bitrace suggests that Huione’s involvement in laundering funds for criminal activities, including fraud and crypto theft, is the primary reason behind Tether’s action. In light of this, the platform has issued a warning to Web3 practitioners, urging them to remain vigilant about transaction risks when engaging in crypto payment businesses. The emphasis is on the importance of compliance and due diligence to avoid potential legal and financial repercussions.

This latest freeze is part of a broader effort by Tether to combat illicit activities within the crypto space. Prior to this action on the TRON address, Tether had already frozen several other crypto wallets, including those on the Ethereum network. A notable incident occurred on May 8, when Tether announced the freezing of an Ethereum wallet holding $100,000,090.15 in USDT.

The ongoing efforts by Tether and other crypto firms to identify and freeze wallets associated with criminal activities demonstrate the industry’s commitment to maintaining the integrity of the cryptocurrency ecosystem. However, the ability of entities like Huione to quickly adapt and attempt to bypass these measures underscores the need for continued vigilance and evolving security measures in the rapidly changing world of digital assets.

As the crypto industry continues to mature, the balance between innovation and regulation remains a critical challenge. The actions taken by Tether and the insights provided by Bitrace serve as a reminder of the ongoing efforts to create a more secure and trustworthy environment for cryptocurrency users worldwide.