In this rapidly evolving cryptocurrency landscape, investors and crypto firms regularly face trouble due to the lack of regulatory frameworks. Recently, a Finiko pyramid scam emerged, posing a threat to innocent investors. However, before any damage could occur, Tether took proactive measures by blacklisting six wallet addresses associated with this pyramid scheme.
Tether’s proactive measures against Finiko pyramid scheme
According to a recent series of posts by blockchain intelligence firm ChainArgo on X (formerly Twitter) on December 20, 2023, Tether has taken action by blacklisting six wallet addresses suspected to be connected to the Finiko pyramid scheme. Among these addresses, five are on the Ethereum network with minimal assets, and one is on Tron with only $7,000.
Tether, renowned for its stablecoin, is actively blocking such addresses, demonstrating increased vigilance in addressing potential fraudulent activities. ChainArgo also stated that some Ethereum transactions seem suspicious and might be related to the Finiko pyramid scheme, but overall, there is nothing unusual or alarming in the activities of these addresses.
Tether’s timely intervention preventing investor harm
It is evident that Tether has taken this action at the right time to prevent potential harm to the majority of innocent investors. A similar fraud scheme was reported by Todayq News on December 19, 2023, where Simpy Bhardwaj, a key player linked to the Gain Bitcoin Ponzi scheme, was arrested by the Enforcement Directorate.
The case involves M/s Variable Pte Ltd and others under the Prevention of Money Laundering Act. Allegedly, they fraudulently collected Rs. 6600 Crore in Bitcoin, and investigations suggest that Simpy, her husband, and MLM agents actively deceived investors. The misappropriated funds were funneled overseas for property purchases, with Simpy actively involved in concealing and layering the proceeds of the crime.
Amid the potential approval of a spot Bitcoin Exchange Traded Fund (ETF), the unresolved issue is the safety of investors’ assets and the lack of a proper legal framework in the United States. Despite the absence of a global crypto regulatory framework, giant asset management firms, including BlackRock, Fidelity, WisdomTree, and many others, are actively participating in this evolving web3 technology.
