Tether Freezes $38M USDT in Crackdown on Suspected Ponzi Scheme

Tether, the leading stablecoin issuer, has taken action against illicit activity by freezing $38.4 million in USDT on TRON following an investigation by ZachXBT, a blockchain investigator.

ZachXBT's research revealed that funds from the collapsed DSJ Exchange and BG Wealth Sharing investment scheme were laundered through various channels, including token swaps, cross-chain bridges, and exchanges.

The freeze is part of a growing trend where stablecoin issuers and exchanges take action after blockchain investigators have traced scam proceeds across chains. However, for victims, a freeze does not guarantee recovery, but rather prevents the blacklisted funds from moving while law enforcement and service providers continue their review.