For Brad Thorne, a police detective in Boise, Idaho, a single string of letters and numbers epitomizes how a sinister digital underworld relies on USDT, a popular cryptocurrency also known as tether. This string represents a cryptocurrency wallet address belonging to the Huione Group, a Cambodia-based financial firm known for large-scale money laundering, where Thorne and other investigators have repeatedly traced huge sums of illicit USDT. Thorne said that one local man recently took his life after losing a large amount of money to scammers who channeled ill-gotten USDT into the same crypto wallet.

“It’s the embarrassment,the shame of it all,” Thorne said of the now-deceased victim. “He’d been a community leader his whole life and I think that was too much for him to take.”

In recent months, even as U.S. authorities moved to sever Huione from the country’s financial system, Huione’s crypto wallets continued to transmit massive sums of USDT, whose value is pegged to the U.S. dollar. The Treasury Department targeted Huione for laundering billions of dollars in illicit proceeds, including for North Korean hackers and organized crime groups engaged in human trafficking and industrial-scale scam operations.

As the issuer of USDT tokens, the crypto firm tether commands vast power to stop or disrupt criminal activity in cryptocurrency. It can blacklist wallet addresses and freeze its tokens in place to stop bad actors from moving ill-gotten proceeds. Thorne and other experts question whether Tether – which boasts a 99% profit margin – should take a more aggressive approach to tamping down crime.

It has destroyed me mentally and financially.

– Kamlesh Mungekar, a crypto scam victim

An analysis by blockchain tracing experts found that after U.S. authorities called Huione a money laundering entity in May, the Huione wallet address tied to the Idaho death transmitted at least $1.4 billion in USDT over a matter of weeks ending in mid-October. At the International Consortium of Investigative Journalists’ request, crypto tracing firm ChainArgos, as well as analysts Yury Serov and Aleks Ring examined the address’s cryptocurrency transactions, which are recorded on a public ledger known as the blockchain. Based in El Salvador, Tether was under no legal obligation to block these funds, according to Jonathan Reiter, chief executive of ChainArgos.Still, Erin West, a former prosecutor and founder of Operation Shamrock, a nonprofit focused on stopping cyber scams, said Tether should have used its power to stop its tokens from interacting with the Huione address.

“It is reprehensible that Tether would let so much money flow through a service flagged for money laundering,” West told ICIJ of the flows through Huione. “They should have frozen this.”

Last month, ICIJ released The Coin Laundrya cross-border inquiry with 37 media partners that examines how major industry players provide criminals with the tools to launder the proceeds of scams, theft, and other crimes – while those harmed are left with little hope of justice. The reporting included numerous examples of USDT being used by crime groups, including the Sinaloa cartel, Chinese traffickers of fentanyl and other drugs, and large-scale scam operators.

So-called stablecoins like USDT have operated in a legal gray area, under a patchwork of evolving laws around the world. In the U.S., the recently passed Genius Act affirms that stablecoin issuers operating

USDT-Linked Wallet Suspected in Crypto Scam Targeting Victims of Idaho and San Diego Killings

Publication Date: 2025/12/02 00:59:03

A cryptocurrency wallet address identified as belonging to Huione, a virtual asset service provider (VASP) based in the People’s Republic of China, is suspected of being involved in a scam that defrauded victims connected to recent high-profile killings in Idaho and San Diego. Investigations by the International Consortium of Investigative Journalists (ICIJ) reveal the wallet received USDT, a stablecoin pegged to the US dollar, from scammers who targeted individuals linked to these cases.

The Connection to the Idaho and San Diego Cases

The investigation centers around two separate incidents: the November 2022 murders of four University of Idaho students and the recent shooting death of a San Diego woman. In both cases, scammers allegedly used online platforms to solicit money from individuals offering support or details related to the investigations. These funds were then converted to USDT and transferred to the Huione-linked wallet.

How the Scam Worked

Scammers exploited the public’s desire to help and their emotional vulnerability following these tragedies. They created fake online profiles and engaged with individuals offering condolences or seeking updates on the cases. They then requested donations or financial assistance, promising to use the funds for legitimate purposes like victim support or investigative efforts. Instead, the money was funneled through cryptocurrency exchanges and ultimately deposited into the suspect wallet.

Huione and USDT: A Closer Look

Huione is a VASP registered with China’s central bank. It facilitates the exchange and transfer of digital assets, including USDT. USDT (Tether) is a stablecoin designed to maintain a 1:1 peg with the US dollar, making it a popular choice for cryptocurrency transactions. However, stablecoins have faced scrutiny due to concerns about openness and potential misuse in illicit activities.

Chainalysis and TRM Labs’ Findings

Blockchain analytics firms chainalysis and TRM Labs independently identified the wallet address as being associated with Huione. In statements to ICIJ, both companies affirmed their attribution. This identification is crucial because it links the fraudulent funds directly to a specific entity, possibly aiding law enforcement in their investigations.

Tether’s Anti-Financial Crime partnership

Tether, the company behind USDT, has actively partnered with TRM Labs and TRON, a large crypto network, to combat financial crime. This partnership aims to proactively collaborate with law enforcement to disrupt criminal activity involving USDT. Recently, the initiative announced the freezing of over $300 million in criminal assets globally.

Justin Sun, founder of the TRON blockchain, emphasized the partnership’s success, stating that using USDT on TRON for criminal purposes will result in capture. This highlights the growing pressure on cryptocurrency platforms to address illicit financial flows.

Wallet Activity

The Huione wallet address linked to the Idaho and San Diego victims began its activity on August 29th of this year and quickly started moving tens of millions of USDT per transaction.

Key Takeaways

• A cryptocurrency wallet linked to Huione is suspected of receiving funds from scams targeting victims connected to the Idaho and San Diego killings.
• Scammers exploited public sympathy and vulnerability to solicit donations under false pretenses.
• Blockchain analytics firms Chainalysis and TRM Labs independently confirmed the wallet’s association with Huione.
• Tether is actively working with partners to combat financial crime and freeze criminal assets.
• This case underscores the risks associated with cryptocurrency and the need for increased vigilance against online scams.