Tether Aids Brazilian Authorities in Freezing R$32 Million in Money Laundering Case

Tether, a prominent company in the digital assets industry, has played a crucial role in assisting Brazilian authorities in their fight against financial crime. According to Tether, the company supported the São Paulo Public Prosecutor’s Office (MPSP) and Brazilian Federal Police in freezing R$32 million associated with a significant money laundering and cyber fraud operation, known as Operation Magna Fraus.

Operation Magna Fraus: A Major Enforcement Action

Initiated on July 15 and 16, Operation Magna Fraus targeted a suspected criminal network engaged in large-scale financial fraud, unauthorized system intrusions, and laundering of stolen funds through Brazil’s PIX instant payment system. The operation led to the execution of arrest and search warrants in Goiás and Pará, recovering R$5.5 million in cryptocurrency and blocking R$32 million in USDT, with Tether's direct involvement.

Authorities also secured a private key used to access stolen crypto assets, transferring them into custody. These assets are set to be liquidated and deposited into a judicial account under São Paulo's Criminal Court Specialized in Tax Crimes, Criminal Organizations, and Money Laundering for further proceedings.

Tether's Global Efforts in Combating Financial Crime

Over the past year, Tether has actively collaborated with global law enforcement agencies, aiding in multiple seizures of illicit funds across various jurisdictions. Notably, last June, Tether was acknowledged by the US Department of Justice (DOJ) for its role in a significant enforcement action involving the seizure of approximately $225 million in USDT. Additionally, Tether assisted the U.S. Secret Service in freezing $23 million tied to transactions on the Russian-sanctioned exchange Garantex and helped freeze $9 million connected to the Bybit hack.

To date, Tether has blocked over 5,000 wallets, assisting law enforcement agencies, including more than 2,800 in coordination with U.S. agencies. The company currently partners with over 275 law enforcement agencies across 59 jurisdictions and maintains a proactive wallet-freezing policy in accordance with the OFAC Specially Designated Nationals (SDN) List and national regulatory bodies.

Commitment to Financial Integrity

Tether's CEO, Paolo Ardoino, emphasized the company's responsibility in combating financial crime, stating, “Tether’s ability to track transactions and freeze USDT linked to illicit activity sets it apart from the traditional financial system that works mostly as a disconnected black box.” He affirmed Tether's commitment to collaborating closely with global law enforcement agencies, including Brazilian authorities, to prevent the exploitation of stablecoin technology by bad actors.

By leveraging advanced tracking tools, Tether enhances law enforcement’s capacity to trace USDT transactions across multiple blockchains, reinforcing the global fight against illicit financial flows. Tether remains steadfast in its mission to combat illicit activities and safeguard the integrity of the cryptocurrency ecosystem.