Tether (USDT) has invested in blockchain analytics firm Crystal Intelligence to enhance its ability to combat crypto-related crime, improve risk monitoring, and detect fraud.

This investment will provide law enforcement and regulators with advanced tools for real-time tracing of stolen or illegal funds, making it harder for bad actors to hide their activities.

By strengthening its analytical capabilities, Tether aims to help authorities track suspicious transactions, scams, and illicit activities involving USDT.

The overarching goal of these efforts is to create a safer, more transparent digital asset ecosystem that fosters confidence among users, law enforcement, and regulators.

This initiative builds on previous collaborations, including the Scam Alert platform, which flags scam-related wallets to assist both individuals and law enforcement agencies.

Crystal Intelligence CEO Navin Gupta emphasized the importance of proactively building trust and preventing threats in the crypto industry, aligning with Tether’s strategic goals.

Tether’s CEO Paolo Ardoino stated that the company intends to send a strong message that misuse of USDT will be met with law enforcement action, including the potential to freeze illegal assets.

Amid a 66% rise in crypto scams in 2024, totaling over $9.3 billion lost in the U.S., Tether is committed to ensuring its stablecoin remains secure and trustworthy.

Tether is also implementing additional security measures, such as high-quality monitoring tools, to enhance transparency and asset compliance.

This initiative will facilitate easier arrests and enable the company to freeze more illegal assets in the future, according to Ardoino.

Crystal Intelligence has collaborated with Tether to develop Scam Alert, a public database that flags wallets associated with scams.

Tether has partnered with over 255 law enforcement agencies across 55 countries, helping to freeze more than $2.7 billion worth of USDT linked to criminal activity.