Crystal Intelligence provides risk monitoring, fraud detection and regulatory intelligence solutions, and Tether’s investment will strengthen the investigative tools used by enforcement agencies, regulators and institutions worldwide, the companies said in a Tuesday (July 8) press release.
With these tools, Tether will enhance its ability to help authorities trace the movement of funds in real time, Tether CEO Paolo Ardoino said in the release.
“Tether has already contributed to freezing billions in unlawful funds and has supported investigations across dozens of jurisdictions,” Ardoino said. “This strategic investment will strengthen our capacity to collaborate more effectively and reinforce a clear message: USDT is the digital dollar for the people, bad actors will be stopped.”
The company’s support of law enforcement officials and investigations into criminals abusing stablecoin technology has included assisting more than 255 law enforcement agencies in 55 jurisdictions and freezing $2.7 billion USDT tied to illicit activity, according to the release.
In addition, both Tether and Crystal Intelligence have supported the development of a public-facing platform called Scam Alert that flags wallet addresses associated with scams and other abuses in real time, per the release.
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“As the crypto industry matures, so must its foundations of trust and intelligence,” Crystal Intelligence CEO Navin Gupta said in the release. “Tether’s backing is both a validation of the work we’ve done together and a joint commitment to future-proofing the industry through actionable insight, integrity and innovation.”
The Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) said in April that cryptocurrency fraud losses leapt 66% in 2024 to reach $9.3 billion.
The Financial Action Task Force (FATF) said in June that the use of stablecoins by North Korean agents, terrorist financiers, drug traffickers and other illicit actors has grown over the past year and that “most on-chain illicit activity now involves stablecoins.”
With growing institutional interest in blockchain, crypto firms find themselves caught in a position of needing to prove that their legitimacy can stand muster to enterprise expectations around security and trust, PYMNTS reported in May.
Tether, whose tokens represent 70% of the stablecoin market, has come under scrutiny for its reserve composition in the past and has chosen to exit certain regulated markets. Its dominance is especially pronounced in places where fiat banking access is constrained or unreliable.
