- Tether has frozen USDT funds tied to Huione Guarantee after the online marketplace was implicated in an $11 billion crypto scam
- According to Bitrace, Tether froze close to $30 million
- Huione Guarantee is however moving USDC funds across its wallets
Stablecoin issuer Tether has frozen close to $30 million in USDT linked to Huione Guarantee, an online marketplace linked to Cambodia’s ruling family. The freezing comes barely a week after blockchain research firm Elliptic disclosed that the marketplace is powering pig butchering scams. According to blockchain security firm Bitrace, Huione Guarantee is still moving funds in other cryptos like USDC, indicating that the freeze may not severely impact its business.
Old Wallets Still in Operation
Explaining the freeze in an X thread, Bitrace noted that Tether only targeted one USDT address on the TRON blockchain, adding that it “confirmed that [the] address is the guarantee-related business address of the Cambodian Huione Group.”
（2/n）On July 13, 2024, the TRON address TNVaKW was frozen by Tether for over 29.62 million USDT. After analysis by #Bitrace, it was confirmed that this address is the guarantee-related business address of the Cambodian Huione Group activated on July 9, 2024.
— Bitrace (@Bitrace_team) July 14, 2024
Details indicate that the targeted address is barely a week old and that “old related business address TL8TBp is still in operation,” and without restrictions. Bitrace believes Tether froze the address for being used by the marketplace to launder funds.
The amount frozen is considerably low considering that the marketplace has facilitated scams that have stolen more than $10 billion. According to Elliptic, a section of Huione Guarantee’s users offer services like helping scammers launder stolen funds and receiving funds from scam victims.
Tether’s Wallet-freezing Policy Questioned
Some merchants even offer electric devices to torture and control people held in compounds running big butchering and romance scams. Tether’s move comes seven months after some in the industry questioned its wallet-freezing policy as the stablecoin issuer increased efforts to control the illicit use of USDT.
The stablecoin issuer has even partnered with blockchain security firm Chainalysis to track USDT transactions on the secondary market.
With Tether freezing funds in one wallet, it’s to be seen whether it’ll go for other Huione Group wallets that may hold larger amounts of USDT.
