Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

About Author

Tanzeel Akhtar is a seasoned journalist who has been reporting on cryptocurrency and blockchain technology since 2015. Her work has appeared in leading publications including The Wall Street Journal,…

Share

Last updated: 

July 8, 2025

Tether, the issuer of the world’s largest stablecoin USDT, has made a new investment in Crystal Intelligence, a blockchain analytics firm.

In a blog post, Tether shares its growing focus on improving transparency and combating illicit use of stablecoins across blockchain networks.

Crystal Intelligence, originally launched by blockchain software firm Bitfury, provides data-driven tools for analyzing blockchain transactions. The firm is used by law enforcement, regulators, and financial institutions to detect and investigate suspicious crypto activity.

With this investment, Tether said it aims to deepen its collaboration with Crystal and further integrate advanced analytics into its compliance and monitoring systems.

Building on Past Collaboration: Scam Alert Platform

Earlier this year, the two firm’s launched Scam Alert, a public platform that flags wallet addresses linked to fraud, hacks, and other malicious activity. The platform is designed to enhance transparency and give the crypto community and regulators more visibility into bad actors.

Through the Scam Alert initiative, Tether and Crystal said they have already provided insights into addresses associated with phishing schemes and other illicit activity.

The continued partnership will likely lead to broader data-sharing efforts and more sophisticated tools aimed at preventing criminal use of stablecoins.

A Proactive Approach to Stablecoin Risk

Tether said it has frequently faced criticism for its role in the broader crypto space, particularly regarding the potential misuse of its USDT token in illicit finance. However, this investment shows a more proactive and cooperative approach to addressing regulatory concerns.

“We believe that combining Tether’s resources with Crystal’s analytics capabilities will significantly enhance our ability to identify and respond to illicit activities,” said Tether’s CEO Paolo Ardoino.

The company has also emphasized its ongoing commitment to working closely with global regulators and law enforcement agencies to ensure its stablecoin remains a safe and transparent tool for global finance. As the demand for stablecoins continues to grow, so does the need for stronger compliance frameworks.

Tether Unveils Plans for Decentralized AI Platform

Tether is expanding beyond stablecoins and into artificial intelligence with the upcoming launch of Tether AI, a decentralized, open-source AI platform designed to run on peer-to-peer networks.

Unveiled by CEO Paolo Ardoino on May 5, Tether AI will support direct payments in USDT and Bitcoin, and will operate without centralized servers or API keys.

It’s described as a modular AI runtime capable of running on any device, offering developers greater privacy, autonomy, and security.

At its core is a concept called “Personal Infinite Intelligence”, suggesting customizable AI agents tailored to user needs and hardware.

Tether’s in-house AI models are already powering tools like a translation service, voice assistant, and Bitcoin wallet assistant, according to Ardoino.

The Financial Action Task Force (FATF) said in a report released this week that global efforts to regulate virtual assets and service providers have improved but remain incomplete, with illicit use of stablecoins accelerating sharply in 2025.

The intergovernmental watchdog’s sixth targeted update on the implementation of its standards found that although 73% of jurisdictions surveyed have passed laws enforcing the so-called Travel Rule for crypto transfers, enforcement remains limited.

The report noted that out of the 85 countries with Travel Rule laws, nearly 60% have yet to issue compliance findings or directives.

The report also highlighted a record-breaking $1.46 billion virtual asset theft this year by North Korean actors from the crypto exchange Bybit.

FATF noted the hackers used social engineering and complex laundering networks involving mixers, OTC traders, and more than 125,000 Ethereum wallets. Only 3.8% of stolen funds were recovered, highlighting persistent difficulties in tracing and repatriating crypto-linked proceeds of crime.

Overall, stablecoins have become the dominant vehicle for illicit on-chain activity, driven by their low cost, fast settlement, and broad liquidity.

FATF cited private sector estimates showing over $30 trillion in stablecoin volume during the past year, alongside the growth of ‘pig butchering’ scams and professional scam networks employing AI-generated chatbots and deepfakes to defraud victims.

Despite these risks, the report found that only one jurisdiction is fully compliant with FATF Recommendation 15 on virtual asset oversight. Meanwhile, 29% of countries were rated ‘largely compliant,’ while about half remain only partially compliant and 21% are not compliant at all.

FATF urged jurisdictions to accelerate licensing and registration of virtual asset service providers, strengthen enforcement against unregistered entities, and implement measures to monitor decentralized finance (DeFi) arrangements.

The report also noted that around half of the surveyed regulators require DeFi projects with identifiable control parties to register as VASPs, but enforcement remains rare.

Looking ahead, FATF plans targeted reports on stablecoins, offshore VASPs, and DeFi over the next year. The regulatory body warned that as stablecoins approach mass adoption, uneven global regulation will heighten illicit finance risks and hamper coordinated responses.

The next comprehensive update on Recommendation 15 implementation is due in 2026.

Mentioned in this article

South Korean prosecutors raided the headquarters of crypto exchange Bithumb on March 19 as part of an investigation into whether the company’s former CEO misused corporate funds to purchase an apartment, according to local media reports.

Authorities from the Seoul Southern District Prosecutors’ Office searched Bithumb’s Yeoksam-dong offices, looking into claims that the exchange provided a 3 billion won ($2.3 million) lease deposit to its former CEO and current advisor, Kim Dae-sik.

Investigators suspect that Kim used a portion of these funds to acquire a personal residence in Seoul’s Seongsu-dong district.

The timing of the investigation raises fresh concerns for Bithumb, which has been working toward a long-awaited initial public offering (IPO).

CEO Lee Jae-won recently reaffirmed the company’s intent to list on the stock market in 2025 and has made structural changes to minimize legal risks tied to key shareholders.

Funds repaid

The Financial Supervisory Service (FSS), South Korea’s financial regulator, previously examined the case before transferring it to prosecutors.

Following the investigation, a Bithumb spokesperson acknowledged in an interview with The Chosun Daily that Kim had taken a loan from an external lender after the FSS investigation and later repaid the funds.

Despite the repayment, prosecutors are reviewing whether the original transaction violated financial regulations or corporate governance rules. The case has intensified scrutiny over Bithumb’s internal financial management as authorities continue to monitor the country’s crypto sector for potential misconduct.

It has also raised concerns about broader governance and financial practices within the exchange, which has faced repeated legal and regulatory scrutiny in recent years.

Listing allegations

The raid comes amid separate allegations that Bithumb and rival exchange Upbit facilitated token listings through intermediaries who allegedly charged projects hefty fees.

Researcher Wu Blockchain reported that some projects paid between $2 million and $10 million to secure listings on the exchanges. The allegations also suggest that certain intermediaries had ties to Upbit shareholders and market makers, with fees ranging from 3% to 5% of token supplies.

Upbit has denied the claims and demanded that Wu Blockchain provide a list of projects that allegedly paid brokerage fees, calling for evidence to support the accusations.

Mentioned in this article