"Crypto platforms Binance, Tether, OKX, and Chainalysis collaborate to halt $50 million worth of cryptocurrency linked to an illicit pig butchering operation"
In a significant move to combat illicit cryptocurrency activity, crypto firms, including Chainalysis, Binance, Tether, and OKX, are deepening their collaboration with law enforcement agencies worldwide. This partnership is aimed at combating pig butchering scams, a type of fraud that has been on the rise in the crypto space.
Recently, the US Secret Service secured the seizure of around $225 million USDT, a sum connected to pig butchering scams. This seizure was facilitated through a collaboration involving Tether, OKX, Coinbase, and the US law enforcement. The frozen funds were initially traced back to nearly 19 addresses, with eight victim addresses transferring funds to the scam between November 2022 and July 2023.
One of the scammer wallets was found to have transferred funds to victims, moving a total of $63,900. Some victims even sent funds to scammers multiple times, with the scammers moving the funds to a consolidation wallet.
The APAC-based law enforcement authority, in collaboration with the aforementioned firms, successfully froze nearly $47 million in illicit funds linked to the scam following a joint investigation. The investigation used Chainalysis' Crypto Investigations Solution to trace the illicit funds.
Tether's CEO, Paolo Ardoino, remains committed to working with law enforcement agencies globally to ensure that funds connected to scams and other illicit activities are frozen. Tether eventually froze the funds in five destination wallets.
Binance and OKX have also emphasised their commitment to security and compliance. Binance stated that its priority is to improve the security of the crypto ecosystem, while OKX described its involvement as evidence of its commitment to security and compliance.
Meanwhile, in other cryptocurrency news, Santander's Openbank is rolling out Bitcoin, Ether, and more for European users. XRP and Dogecoin ETFs are set to launch this week. Next Technology has filed for a $500 Million common stock offering to buy more Bitcoin.
However, the crypto space is not without its challenges. One user lost $1 Million USDC to a MEV bot after a mistaken transaction. Monero's double-spending threat has grown after a block reorganization. Hackers have seized the FBI's botnet takedown targets and built a stronger cyberweapon from it. Nvidia's stock has dropped by 3% due to accusations of breaching China's anti-monopoly law.
The commitment from the crypto industry leaders suggests that pig butchering scams involving cryptocurrencies are under more scrutiny. The partnership aims to protect users and improve trust in the blockchain ecosystem. As the crypto industry continues to evolve, it's clear that collaboration between crypto firms and law enforcement agencies will play a crucial role in maintaining the integrity and security of the ecosystem.
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