Tether, a well-known stablecoin issuer, recently frozen a TRON wallet known as TNVaKW, containing $29.62 million in USDT tokens that were suspected to be linked to criminal activities and crypto money laundering. This freeze took place on July 13 and was announced through a dedicated handle on X that highlights banned addresses. Bitrace, a leading provider of compliance and investigative tools for law enforcement agencies, has provided additional context to explain why the Tron wallet was blacklisted.
Bitrace’s analysis revealed that the frozen address is associated with the guarantee business of the Cambodian Huione Group, which became active on July 9, 2024. Despite the freeze, Huione is attempting to bypass the restrictions by activating a new business address, TQuFSv, and transferring $114,800 USDC from the frozen TNVaKW address. Huione’s old related business address, TL8TBp, is still operational, and the company’s other guarantee and payment businesses have remained active without any frozen addresses over the past six months.
The reason behind the freeze is believed to be related to Huione’s involvement in laundering funds for criminal activities, including fraud and crypto theft. Bitrace has issued a warning to Web3 practitioners to exercise caution and remain vigilant about transaction risks when engaging in crypto payment businesses. Compliance and due diligence are emphasized to avoid potential legal and financial repercussions. Tether has previously frozen several other crypto wallets, including those on the Ethereum network, with one significant incident occurring on May 8 when an Ethereum wallet holding $100,000,090.15 in USDT was frozen.
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