Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Tether has once again frozen a significant amount of its stablecoins. The 38.4 million USDT involved is linked to fraudulent activities, as reported by the anonymous blockchain investigator ZachXBT.
This pertains to a scheme involving the platforms DSJ Exchange (DSJEX) and BG Wealth Sharing, which was uncovered last week and resulted in losses of $150 million for victims. ZachXBT detailed the scheme and explained how he collaborated with cryptocurrency exchanges Binance and OKX, as well as U.S. law enforcement, to trace the funds. Consequently, crypto assets worth over $41.5 million have been blocked across various platforms.
The majority of the 38.4 million USDT was frozen by Tether on the TRON network. Nineteen TRON addresses with substantial USDT balances have been blacklisted. One crypto address held stablecoins valued at $9.4 million.
Related Posts
ZachXBT discovered that from April 27 to May 3, the fraudsters laundered over $92 million. To obscure the movement of funds, the perpetrators employed token swaps and cross-chain bridges. The on-chain investigator successfully tracked the movement of crypto assets through the Solana and TRON networks to wallets on exchanges where funds could be cashed out.
The crypto scheme involving the trading platform DSJ Exchange and the hedge fund BG Wealth Sharing operated for approximately a year, promising investors daily returns of up to 2.6%, referral commissions, and bonuses based on the investor’s rank. However, investors later encountered difficulties withdrawing their funds, and a “tax” of 12% was demanded for asset unlocking, as reported by ZachXBT.
Last year, the Alberta Securities Commission in Canada suspected BG Wealth Sharing of deceiving investors with promises of trading strategies based on artificial intelligence. The Utah Securities Division in the United States stated that the firm lacked registration and licenses for investment activities. The UK’s Financial Conduct Authority (FCA), along with regulators in New Zealand and Tonga, also expressed concerns regarding BG Wealth Sharing, suggesting that the platform might be providing financial services illegally.
Recently, ZachXBT accused the decentralized exchange Tokenlon of facilitating illicit trading activities linked to fraudulent networks and illegal online marketplaces. The researcher claimed that the exchange fails to take measures to filter suspicious transactions.
