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Monero Price Surges on Complex Money Laundering Scheme Involving $120 Million in USDT

A large flow of USDT was moved through swaps and multiple blockchains before being converted, sending Monero sharply higher. Tether also froze $72 million in tokens.

By Mike Hesp
• 2 min read
Monero Price Surges on Complex Money Laundering Scheme Involving $120 Million in USDT

Key Takeaways

  • A money laundering operation involving about $120 million in USDT triggered a fast jump in Monero’s price from around $330 to nearly $438.
  • According to ZachXBT, the funds were spread across Tron, instant swaps, cross-chain tools, and exchanges to hide the money trail.
  • Tether froze $72 million in USDT, and the case highlights the oversight challenges privacy coins and stablecoins pose for European authorities.

A large money laundering operation that converted about $120 million (€104 million) in USDT stablecoins through a complicated network of swaps and blockchains led to a sharp jump in Monero (XMR). The price of this privacy coin rose in a short time from around $330 (€286) to an intraday high of nearly $438 (€380), a move that highlights Monero’s limited liquidity.

Complex Route From USDT to Monero

According to onchain researcher ZachXBT, the operation started with a receipt of 120.2 million USDT on the Tron network, which is known for its low transaction fees. The funds were then split up and spread across different channels. A large portion was used to buy Monero, which helped drive the sharp price increase. Other parts were moved through instant swap services and cross-chain tools to Bitcoin and Ethereum networks, as well as to exchanges like KuCoin.

This strategy of spreading funds across different blockchains and services is typical of attempts to hide where the money came from. Instant swaps, which often happen without extensive identity checks, and cross-chain transactions make the flow of funds harder to track.

Tether Freezes $72 Million (€62.4 Million) in USDT

In response to these activities, Tether, the issuer of USDT, blocked an address tied to the operation. That froze $72 million (€62.4 million) in USDT, which means those tokens can no longer be moved or redeemed. Tether has taken similar steps before when it suspected illegal activity, showing that the company actively helps fight money laundering through its stablecoin. That lines up with the broader role of stablecoin regulation, where regulators and market participants are increasingly debating the risks and uses of these tokens.

The mix of fast transfers into a privacy coin, the use of instant swaps, and cross-chain transfers points to a pattern often linked to money laundering. While the source of the $120 million (€104 million) is not clear, this case highlights the challenges privacy coins and stablecoins create for oversight and enforcement.

Why This Matters for European Crypto Users

For European users and regulators, this development matters because it shows how privacy coins like Monero can be used in complex money laundering setups. It may point to a growing need for European authorities to strengthen their oversight of stablecoins and privacy-focused cryptocurrencies, especially as international agencies pay more attention to the risks of stablecoins in illegal activity.

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