Tether Freezes $225 Million Associated with Human Trafficking Organization During DOJ Probe
The "pig butchering" swindle was connected to the $225 million.
Following an investigation by the U.S. Department of Justice (DOJ) into an international human trafficking organization in Southeast Asia, stablecoin issuer Tether has frozen $225 million worth of its own stablecoin.
The study employed Chainalysis's blockchain analysis tools and lasted for several months. According to a press release, it's the biggest stablecoin freeze ever.
According to on-chain data, Tether frozen the $225 million spread over 37 wallets; the bulk of those tokens had earlier been moved to OKX, a cryptocurrency exchange that was also involved in the probe.
The "pig butchering" hoax, which the Federal Bureau of Investigation (FBI) claims cost American citizens $3.3 billion last year, is connected to the crime syndicate.
The press release further stated that the frozen tokens did not belong to Tether users and were being kept in self-custodied wallets.
"Tether aims to set a new standard for safety within the cryptocurrency space through proactive engagement with global law enforcement agencies and our commitment to transparency," stated Paolo Ardoino, CEO of Tether.
32 crypto addresses connected to terrorism and hostilities in Israel and the Ukraine were also frozen by Tether last month.
Human trafficking is a severe and pervasive violation of human rights, often described as a modern-day form of slavery. The impact of human trafficking is devastating, affecting individuals, communities, and societies on a global scale. Here are several aspects highlighting the severity of human trafficking:
Exploitation and Coercion: Human trafficking involves the recruitment, transportation, transfer, harboring, or receipt of individuals through force, coercion, or deception for the purpose of exploitation. This exploitation can take various forms, including forced labor, sexual exploitation, and involuntary servitude.
Magnitude of the Issue: Human trafficking is a vast and lucrative criminal enterprise. It is estimated that millions of people are trafficked worldwide each year, generating billions of dollars in illegal profits for traffickers.
Impact on Victims: Victims of human trafficking endure severe physical and psychological harm. They may face violence, sexual abuse, forced labor in hazardous conditions, and a range of health issues. The trauma experienced can have long-lasting effects, affecting the victims' well-being and mental health.
Violations of Human Rights: Human trafficking is a clear violation of basic human rights, including the right to life, liberty, and security of person; the right to be free from torture, cruel, inhuman, or degrading treatment or punishment; and the right to work in just and favorable conditions.
Vulnerability of Marginalized Groups: Certain groups, such as women and children, migrants, and those living in poverty, are particularly vulnerable to human trafficking. Discrimination, lack of access to education, and economic hardship contribute to their susceptibility to exploitation.
Global Reach: Human trafficking is a transnational crime that knows no borders. It affects countries and regions worldwide, and its complexity often requires international collaboration to combat effectively.
Organized Crime Involvement: Human trafficking is frequently linked to organized criminal networks that operate with sophistication and evade law enforcement. These networks engage in various forms of trafficking, exploiting individuals for financial gain.
Challenges in Detection and Prosecution: Identifying and prosecuting human traffickers pose significant challenges. Victims may be hidden or reluctant to come forward due to fear of reprisals, shame, or lack of trust in law enforcement.
Link to Other Criminal Activities: Human trafficking is often interconnected with other criminal activities, such as money laundering, drug trafficking, and terrorism. Addressing human trafficking requires a comprehensive approach to tackle these related issues.
Global Response: Recognizing the severity of human trafficking, the international community has taken steps to combat this crime. Various organizations, governments, and NGOs work collaboratively to raise awareness, implement preventive measures, and support the victims of trafficking.
In summary, human trafficking is a grave violation of human rights with far-reaching consequences. Combating this crime requires a concerted effort from governments, law enforcement, NGOs, and society as a whole to raise awareness, strengthen preventive measures, and ensure justice for the victims.