Tether Partners with INHOPE to Combat Online Child Exploitation
Tether has joined forces with INHOPE, an international organization dedicated to combating online Child Sexual Abuse Material (CSAM), in an effort to thwart the financial transactions that support child exploitation networks. Announced on Wednesday, this collaboration emphasizes Tether’s commitment to enhancing its monitoring capabilities and compliance mechanisms designed to detect and halt dubious financial activities associated with CSAM.
Building on a Strong Foundation
This partnership builds on their ongoing relationship, which started in 2023 when Tether became the inaugural cryptocurrency ally of INHOPE. As the issuer of the world’s leading stablecoin, Tether stated that it is collaborating with various exchanges, law enforcement agencies, and global regulatory bodies to track and mitigate such forms of abuse. CEO Paolo Ardoino remarked on the potential of blockchain technology to enhance transparency and accountability in financial dealings, reiterating the company’s dedication to responsible innovation and the protection of digital asset integrity.
Recent Actions Against Illicit Networks
The timing of this announcement aligns with Tether’s recent increased engagement in dismantling illicit networks. Reports indicate that Tether has frozen $225 million in USDT tied to a high-profile “pig butchering” romance scam and human trafficking activities, marking it as the largest confiscation of USDT to date. This operation was executed in partnership with crypto platform OKX and the U.S. Department of Justice, utilizing blockchain analysis from Chainalysis to trace the flow of illicit funds effectively. The wallets subject to confiscation were self-custodial, necessitating thorough tracking efforts across varying jurisdictions.
Addressing Allegations and Enhancing Security
In earlier statements, Tether disclosed that it had successfully blocked $2.7 billion in USD₮ overall. This figure was shared in response to allegations suggesting that delays in Tether’s wallet blacklisting process had enabled the transfer of over $78 million in illicit funds before enforcement actions could take place. A Tether representative clarified that while enforcement delays merit scrutiny, characterizing these as significant loopholes misrepresents their ongoing cooperative work with law enforcement to actively freeze suspicious addresses.
Stablecoin Market Growth and Challenges
On a broader scale, the stablecoin market experienced notable growth in the first half of 2025, with total market capitalization climbing from $204 billion to $252 billion and monthly transaction volumes reaching an impressive $1.39 trillion, as reported by CertiK. Yet, despite this surge, CertiK cautioned that many projects suffer from security vulnerabilities due to inconsistent regulatory preparedness and varied security measures.
In their evaluation of leading stablecoins called the Skynet Stablecoin Framework, USDT maintained its preeminent position, especially within the Tron ecosystem, while USDC bolstered its status by acquiring a MiCA license and pursuing an IPO. Other notable performers included PYUSD, RLUSD, and FDUSD, although the sector collectively faced $2.47 billion in losses across 344 incidents, primarily stemming from inadequate key management practices and flawed decentralized finance structures, rather than smart contract inaccuracies. One particularly concerning event was FDUSD’s brief depeg to $0.76 in March, prompted by scrutiny regarding its reserve quality.
