Tether has announced a partnership with INHOPE, the global network focused on fighting Child Sexual Abuse Material (CSAM) online, to stop the illicit use of digital transactions in child exploitation networks.
In a Wednesday press release, Tether, issuer of the world’s most widely used stablecoin, said it has implemented monitoring tools and compliance protocols to identify and disrupt suspicious financial activity linked to CSAM.
The move deepens a relationship that began in 2023, when Tether became INHOPE’s first cryptocurrency partner.
Tether said it works with exchanges, law enforcement, and international regulators to trace and prevent such abuse.
“Blockchain technology has the power to bring transparency and accountability to financial transactions,” said Tether CEO Paolo Ardoino.
“By expanding this initiative, we reinforce our commitment to responsible innovation and safeguarding the integrity of digital assets.”
The collaboration comes amid Tether’s growing role in efforts to dismantle criminal networks.
As reported, Tether has frozen $225 million worth of USDT linked to a large-scale “pig butchering” romance scam and international human trafficking operation, marking the largest USDT confiscation to date.
The action followed a months-long investigation in collaboration with crypto exchange OKX and the U.S. Department of Justice.
The seized funds were traced using blockchain analytics tools provided by Chainalysis, allowing investigators to follow the movement of illicit tokens and prevent further misuse. The wallets involved were self-custodial, requiring extended tracking efforts across multiple jurisdictions.
In May, a Tether representative told Cryptonews.com that the company has successfully frozen and blocked $2.7 billion in USD₮ to date.
The statement came in response to a report that claimed a delay in Tether’s wallet blacklisting process allowed over $78 million in illicit funds to be moved before enforcement actions could be executed.
“While any delay in enforcement should be examined, the idea that this represents a systemic loophole is both misleading and lacking perspective as Tether collaborates with law enforcement to freeze addresses on a daily basis,” the representative said.
The first half of 2025 saw the stablecoin market grow substantially, with total supply rising from $204 billion to $252 billion and monthly settlement volumes hitting $1.39 trillion, according to CertiK’s latest report.
Despite this momentum, the firm warned that many projects remain vulnerable due to uneven security measures and inconsistent regulatory readiness.
CertiK’s Skynet Stablecoin Framework assessed top stablecoins based on compliance, transparency, and operational risks. USDT maintained dominance, especially on Tron, while USDC strengthened its position with a MiCA license and IPO.
Other strong performers included PYUSD, RLUSD, and FDUSD. However, the sector recorded $2.47 billion in losses across 344 incidents, largely due to poor key management and flawed DeFi logic, not smart contract bugs.
One of the most alarming events was FDUSD’s temporary depeg to $0.76 in March, triggered by concerns over reserve quality.
