Tether Says DOJ Confirmed Its Support in Freezing More Than $52 Million in Digital Assets

Tether, the issuer of the USDT stablecoin, said it helped the U.S. Department of Justice clamp 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 an international fraud and money-laundering organization. The department said Tether actively cooperated with the investigation.

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

U.S. authorities seized about $12 million from two digital-asset wallets that Xinbi Guarantee used 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 the use of digital assets does not allow criminal organizations to evade law enforcement. He also thanked the Justice Department for formally recognizing Tether's active role in the operation. Tether will continue working with law enforcement agencies around the world to prevent its platform from being used for illicit activity, he added.