Tether, the issuer of the world's largest stablecoin USDT, has made a strategic investment in blockchain analytics firm Crystal Intelligence to combat the misuse of stablecoins. The partnership, valued at millions of dollars, focuses on enhancing real-time fraud detection, risk assessment, and regulatory compliance tools. This move responds to a sharp 66% increase in crypto theft during 2024, with over $9.3 billion stolen globally.
CEO Paolo Ardoino emphasized Tether's commitment: "We are enhancing our ability to assist authorities in tracing funds in real time... bad actors will be stopped." The collaboration builds on Tether's existing efforts, which have already frozen $2.7 billion in illicit assets across 55 jurisdictions, including a recent $225 million seizure with the U.S. Department of Justice targeting pig-butchering scams.
The investment addresses critical vulnerabilities highlighted in a January 2025 UN report identifying USDT as the "preferred choice" for money launderers in Southeast Asia. Despite this, the report noted that less than 1% of all crypto transactions fund criminal activity. With USDT dominating crypto markets—processing $61.9 billion daily and facilitating nearly 60% of all trades—Tether aims to preempt regulatory crackdowns by strengthening its forensic capabilities before mandates require them.
Crystal Intelligence CEO Navin Gupta stated the partnership reflects a "joint commitment to future-proofing the industry" through proactive threat mitigation rather than reactive measures.