Tether Freezes $29.62 Million in USDT Tied to Cambodian Huione Group

3 months ago 44

Stablecoin issuer Tether froze 29.62 million USDT tokens on July 13. These tokens were linked to criminal activities involving the Cambodian Huione Group.

This action highlights Tether’s dedication to maintaining the integrity of its stablecoin, especially amid increasing regulatory scrutiny.

Why Tether Froze the USDT Tokens

Blockchain security firm Bitrace reported that the wallet “TNVaKW” holding the frozen USDT tokens was linked to Cambodia’s Huione Group’s guarantee business. This wallet was frozen just a week after being activated on July 9, 2024.

“The reason why TNVaKW was frozen may be related to assisting in the laundering of funds for criminal activities such as fraud and crypto theft,” Bitrace stated.

Despite the freeze, the address continues to move USDC stablecoins. Bitrace revealed that Huione transferred 114,800 USDC from the frozen TNVaKW address to a newly activated TQuFSv address.

Bitrace also noted that the freeze affects only the mentioned address. Huione’s other business addresses remain operational, with none of the other relevant addresses frozen.

“[The] old related business address TL8TBp is still in operation, and its other guarantee and payment businesses have been in operation in the past six months. None of the relevant addresses have been frozen,” the firm added.

The freezing action follows a report that Huione Guarantee has become a popular online marketplace for scam operators. Huione Guarantee is part of Huione Group, a Cambodian conglomerate with links to the ruling Hun family.

BeInCrypto reported that crypto wallets used by Huione Guarantee and its merchants have received more than $11 billion since 2021. Tether’s USDT plays a prominent role in these transactions. While not all transactions can be linked to fraud or illicit activity, reports suggest that most payments on the platform are likely related to these activities.

So, Tether’s freezing action aligns with its firm stance against the illegal use of its assets. Over the past year, Tether has frozen significant amounts of USDT, including $5.2 million linked to phishing scams in May and $225 million tied to a Southeast Asian human trafficking syndicate last year.

Despite these efforts, Tether faces ongoing criticism and allegations that its tokens are used to finance criminal activities. Recently, Ripple CEO Brad Garlinghouse hinted at a possible US government investigation into Tether, a claim strongly denied by Tether CEO Paolo Ardoino.

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