Tether Doubles Down with INHOPE: Crypto Giant Ramps Up Fight Against Child Exploitation
Tether just weaponized its blockchain dominance for something unexpected—hunting predators. The stablecoin behemoth is expanding its partnership with INHOPE, a global hotline network, to throttle online child abuse material. Because even the most cynical crypto skeptics can’t argue with this use case.
How it works: Tether’s tracing tech—usually deployed to freeze shady transactions—now helps identify and dismantle exploitation networks. The same tools that track illicit crypto flows are being repurposed to follow the money behind abuse content. Ironic, given how often regulators accuse crypto of enabling crime.
The bottom line: While Bitcoin maximalists debate monetary policy, Tether’s putting its $83B war chest to work cleaning up the internet’s darkest corners. A rare PR win for an industry that desperately needs them—even if it does smell like strategic goodwill mining.
Tether Teams Up With Regulators to Tackle Crypto Crime
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.
INHOPE is excited to expand our partnership with @Tether_to in the fight against CSAM. As our first crypto partner in 2023, their ongoing commitment shows how vital financial companies are in this fight. Proud to welcome them as a Gold Partner
https://t.co/QGPAzjl65P
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.
Stablecoins Surge to $252B, but Security Lags Behind
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.
