Tether Ventures Into Blockchain Forensics With Strategic Investment in Crystal Intelligence

The world’s largest stablecoin issuer, Tether, has forayed into the blockchain forensics space. The company just announced a strategic investment in the blockchain analytics firm, Crystal Intelligence, which also provides advanced risk monitoring.

According to a blog post by Tether, the latest investment reflects its commitment to crime prevention and global enforcement cooperation. The stablecoin issuer states that it has a compliance-focused infrastructure strategy, designed to promote the responsible growth of the cryptocurrency ecosystem.

Tether Invests in Crystal Intelligence

In line with its compliance-focused strategy, Tether has recently integrated an institutional-grade monitoring tool. This move ensures that tokenized real-world assets are issued with transparency and in compliance with relevant regulations.

The investment in Crystal Intelligence is another significant step in that direction. Tether intends to use Crystal Intelligence’s fraud detection and regulatory intelligence solutions to combat illegal stablecoin use. The company aims to support law enforcement in building a more secure digital asset ecosystem.

Tether’s CEO, Paolo Ardoino, said:

“Tether is firmly committed to supporting law enforcement agencies in a shared effort to combat illicit activity. With the latest in advanced intelligence tools, like those being developed by Crystal Intelligence, we are enhancing our ability to assist authorities in tracing the movement of funds in real time.”

Assisting Law Enforcement in Combating Scams

So far, the stablecoin company has aided over 255 law enforcement agencies across at least 55 jurisdictions in freezing more than $2.7 billion Tether USD (USDT) tied to illicit activity. These agencies include the U.S. Secret Service and the Federal Bureau of Investigation (FBI). The FBI reported $9.3 billion in crypto-related scam losses last year, representing a 66% rise from 2023.

Tether intends to continue supporting law enforcement officials voluntarily in their efforts to prevent criminals from abusing stablecoin technology. The investment in Crystal Intelligence will strengthen the investigative tools used by regulators and enforcement agencies in this process. Both entities have already invested in the development of Scam Alert, a platform that flags addresses tied to scams in real-time.

“As the crypto industry matures, so must its foundations of trust and intelligence. Tether’s backing is both a validation of the work we’ve done together and a joint commitment to future-proofing the industry through actionable insight, integrity, and innovation. We see too many players waiting for mandates,” commented Navin Gupta, CEO of Crystal Intelligence.

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