Stablecoin issuer Tether froze round $5.2 million USDT on addresses believed to be operated by phishing scammers.
Blockchain analytics store SlowMist reported that 12 Ethereum addresses with disabled Tether (USDT) holdings had been concerned within the freeze. Every pockets was labeled “USDT Banned Address”, and a SlowMist safety researcher mentioned the funds appeared related to an on-chain prison gang.
Phishing is rampant inside the crypto sphere, with unhealthy actors mimicking real platforms or dapp to steal personal keys and compromise wallets.
Scammers proceed to launch assaults, however safety consultants famous that customers and platforms have developed strong defenses in opposition to these scams. In keeping with CertiK, final month marked the bottom quantity misplaced to scams and phishing hacks since 2021. Unhealthy actors may solely pilfer $25.7 in April, per reviews.
Tether’s centralization might assist fight illicit wealth
Normally, freezing stolen crypto wealth proves troublesome as decentralized entities might undertake a hyper-censorship-resistant mannequin. In instances like this, Tether’s centralized construction might assist in stemming prison exercise.
That is additionally not the primary time the stablecoin issuer has stepped in. In March, Tether blacklisted 4 addresses holding greater than $20 million in USDT as a part of a pushback in opposition to prison use of its stablecoin.
The corporate promised to bolster its operations in opposition to illicit exercise following claims from the United Nations alleging negligence by the USDT operator. In a letter to U.S. lawmakers, Tether additionally affirmed the intention to widen its highlight on illicit crypto transactions executed through stablecoin corridors.
