Tether, the issuer of the USDT stablecoin pegged to the US dollar, has frozen five addresses on the Ethereum network holding a total of 24.35 million USDT. Blockchain security company SlowMist reported that the transaction took place approximately eight hours ago.
Tether has frozen accounts at five different wallet addresses on the Ethereum blockchain. The total value of USDT assets held at these addresses is estimated to be approximately $24.35 million.
Following the freezing of the account, the transfer of USDT tokens to the affected addresses was blocked.
MistTrack, a blockchain tracking platform affiliated with SlowMist, shared noteworthy findings regarding the past transactions of one of the frozen addresses.
According to MistTrack’s analysis, the address in question interacted with addresses previously associated with phishing attacks and investment fraud activity.
The platform highlighted address activity linked to fraudulent methods known as “pig-butchering,” where victims are lured into fake investment transactions by establishing trust.
Based on these findings, MistTrack stated that Tether’s decision to freeze accounts may have targeted addresses that could be linked to criminal activity.
However, no definitive confirmation has been shared regarding whether all of the addresses were used for illegal activities.
Furthermore, details regarding which official request or security assessment led to Tether’s transaction were not disclosed.
Stablecoin issuers can, under certain conditions, block the transfer of tokens from suspicious addresses.
These types of measures can be implemented to restrict the movement of illicit funds and to seize assets potentially linked to fraudulent activities.
This latest development has brought back into focus the importance of tracking stablecoin transactions through on-chain analytics and implementing security measures against suspicious fund movements.
*This is not investment advice.
