Tether worked with Brazilian authorities to block R$32 million linked to a cyber fraud ring.

Operation Magna Fraus uncovered a large scheme using stolen funds and Brazil’s PIX system.

Tether has now helped freeze thousands of wallets across 59 countries.

Tether has once again stepped up in a major way, this time helping Brazilian authorities crack down on a large-scale money laundering and cybercrime case. According to a recent announcement, the stablecoin company worked with the São Paulo Public Prosecutor’s Office and the Federal Police to freeze R$32 million worth of USDT.

The investigation, known as Operation Magna Fraus, kicked off on July 15 and 16 and focused on a criminal group accused of financial fraud, illegal system access, and using Brazil’s PIX payment system to move stolen funds. Police carried out searches and arrests in the states of Goiás and Pará. Along the way, they recovered R$5.5 million in cryptocurrency and found a private key connected to other stolen assets.

The seized crypto will be turned into cash and placed under the control of São Paulo’s Criminal Court that specializes in tax crimes and financial fraud. Tether’s fast response played a key role in ensuring the funds didn’t disappear.

Also Read: Tether to Drop Support for 5 Blockchains by 2025 in Major Infrastructure Shift

Tether Helps Track Funds Laundered via PIX

The fraud network wasn’t small. It used technology to hack into systems, steal funds, and launder money quickly through digital payment platforms. PIX, which processes payments in seconds, made it easy for criminals to hide their tracks. Without the right tools and cooperation, tracing those movements would’ve been nearly impossible.

The company’s support allowed Brazilian authorities to act fast. It’s not the first time the company has done this. In 2023, Tether was praised by the U.S.

Department of Justice for helping recover $225 million in USDT from a separate case. Earlier this year, it helped the U.S. Secret Service freeze $23 million tied to a Russian-sanctioned exchange and another $9 million linked to the Bybit hack.

Over 5,000 Illicit Wallets Frozen

The company is now working with over 275 law enforcement agencies in 59 regions. So far, the company has frozen more than 5,000 wallets tied to illegal activity. Over 2,800 of those actions happened with U.S. authorities.

It also follows strict guidelines, working in line with global sanctions and regulators. Its system allows it to track suspicious USDT movements across different blockchains, giving investigators a big advantage.

Tether’s role in the Brazil case shows how the crypto world is changing. More companies are stepping up to fight crime and keep the space safe. Tether says it will keep doing its part to stop bad actors and help law enforcement when needed.

Also Read: Tether Joins Thailand’s Cybersecurity Hackathon 2025 as Gold Sponsor

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Filed under: Bitcoin - @ July 18, 2025 9:13 pm