Tether Invests in Crystal Intelligence to Fight Illicit Stablecoin Use Globally

TL;DR

• Tether made a strategic investment in Crystal Intelligence to enhance blockchain forensics and fraud detection tools.
• Crypto scams in the U.S. surpassed $9.3 billion. Tether has already helped freeze over $2.7 billion in illicit funds.
• The deal will boost projects like Scam Alert and deliver real-time intelligence to fight crime in decentralized ecosystems.

Tether confirmed a strategic investment in Crystal Intelligence, a firm specializing in blockchain forensics and fraud detection in crypto networks.

The move aims to strengthen transaction monitoring capabilities and the tracking of funds linked to financial crimes, driven by a sharp rise in crypto-related scams. According to official reports, in 2024 crypto fraud losses in the United States exceeded $9.3 billion, marking a 66% increase from the previous year.

The company, issuer of USDT, already works directly with more than 250 law enforcement agencies in 55 countries, including the FBI and the U.S. Secret Service. So far, Tether has taken part in investigations that led to the freezing of over $2.7 billion in digital assets tied to illicit activity. The investment in Crystal Intelligence will allow those efforts to expand, providing security forces and regulators with better tools to analyze and monitor capital flows in decentralized ecosystems.

Tether to Enhance Scam Alert Capabilities

The two companies previously collaborated on the development of Scam Alert, a public platform that identifies wallet addresses used in scams and abusive activity in real time. Scam Alert allows any user to check suspicious addresses and helps stop fraudulent operations before they’re executed. The announced investment seeks to scale these resources and make advanced blockchain intelligence tools available to more institutions.

Paolo Ardoino, CEO of Tether, pointed out that working with Crystal Intelligence aims to improve the ability to trace illicit funds and support international investigations. Meanwhile, Navin Gupta, CEO of Crystal, emphasized that the crypto ecosystem must stay ahead of threats instead of simply reacting after damage has been done. Both agreed the industry needs stronger trust frameworks if it wants to consolidate its integration with traditional financial systems.

Tether also plans to enhance its compliance infrastructure and ensure tokenized assets are issued and managed with proper traceability and oversight standards.