Thai Police Seize Over $2.5 Million in USDT From Chinese Gang

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• Thai authorities have seized approximately $2.5 million in cryptocurrency assets linked to Chinese nationals involved in fraudulent activities
• The operation was a collaborative effort between Thai and Chinese law enforcement agencies, targeting a network accused of human trafficking and financial fraud
• This action reflects Thailand’s ongoing commitment to combating transnational cybercrime and financial fraud

In a significant crackdown on international financial crime, Thai authorities have confiscated around $2.5 million in cryptocurrency assets from Chinese individuals implicated in fraudulent schemes. The joint operation with Chinese law enforcement aimed to dismantle a network suspected of engaging in human trafficking and financial fraud. The funds were being held in Tether (USDT), lending more credence that the stablecoin is being heavily used by Asian crime networks.

Gang Tried to Wipe Evidence

The arrests were made by the Bangkok Metropolitan Police Bureau in collaboration with Chinese authorities, who executed a coordinated operation resulting in the seizure of the haul from digital wallets associated with two Chinese nationals. The suspects, identified as Mr. Ye Wanyou, 29, and Mr. Li Weijie, 30, were apprehended at a luxury residence in Bangkok. During the arrest, they attempted to destroy evidence by deleting data from their devices but were promptly subdued by law enforcement officers. 

The investigation revealed that the suspects were allegedly involved in human trafficking operations near Thailand’s border with Myanmar. Further inquiries indicated potential connections to fraudulent operations in Cambodia and deceptive product sales within Thailand. Thai Prime Minister Paetongtarn Shinawatra emphasized the importance of international cooperation in addressing such transnational crimes, stating that collaborative efforts are crucial in dismantling complex criminal networks. 

Use of Tether Presents Uncomfortable Truth

The revelation that the criminal gang utilized Tether’s USDT stablecoin is particularly embarrassing for the company due to its ongoing efforts to distance itself from associations with illicit activities.

Tether has been striving to establish USDT as a legitimate financial tool, emphasizing its benefits for efficient transactions and financial inclusion, but this has been undermined by reports that USDT has become a preferred choice for money launderers and fraudsters in Southeast Asia. In addition, the United Nations Office on Drugs and Crime (UNODC) reported last year that USDT is favored by criminals for its speed, cost-effectiveness, and perceived lack of stringent regulatory oversight.

Tether has taken steps to combat the misuse of its stablecoin, including freezing assets linked to criminal activities and working closely with global law enforcement agencies. Despite these efforts, the association of USDT with criminal operations remains a significant concern, as it challenges Tether’s narrative of being a responsible and law-abiding entity in the financial ecosystem.