Tether Blacklists Six Wallets Linked to Finiko Pyramid Scheme, Intensifies Crackdown on Illicit Crypto Activities

Tether Blacklists Six Wallets Linked to Finiko Pyramid Scheme, Intensifies Crackdown on Illicit Crypto Activities

Crypto News – Tether, a prominent stablecoin issuer, has recently intensified its efforts to combat illicit activities in the cryptocurrency sphere by blacklisting six wallets. Among these, five are based on the Ethereum network, and one is on the Tron network. This action is a part of Tether’s ongoing strategy to proactively prevent misuse of its platform.

Blockchain intelligence firm ChainArgos has raised concerns about several dubious transactions on the Ethereum addresses, suggesting a possible link to the notorious Finiko pyramid scheme. This scheme is infamous for defrauding Russian investors of approximately $95 million. Despite these questionable activities, other transactions within these addresses appear to be normal.

In contrast, the blacklisted Tron address shows limited activity, with a notable transaction being a single incoming transfer of around $7,000 in USDT from Bitfinex, as reported by ChainArgos.

Tether’s history of freezing assets dates back to a 2017 security breach in which an attacker stole $30 million worth of USDT. Since then, the company has taken a firm stance against malpractices, leading to the blacklisting of over 960 Ethereum addresses. October witnessed a significant action by Tether, where it froze 32 accounts containing roughly $874 million, linked to illegal activities in Israel and Ukraine.

Tether has worked closely with the National Bureau for Counter-Terror Financing of Israel (NBCTF) to curb the use of cryptocurrencies in funding terrorism and other forms of warfare. The company has also cooperated with law enforcement agencies in Ukraine to address similar issues.

However, not all of Tether’s actions have been met with approval. In April, the company faced criticism for blacklisting an address that extracted $25 million from Maximal Extractable Value (MEV) bots. Critics, particularly those advocating for decentralization, argued that this move sets a concerning precedent for the cryptocurrency industry.