Monero's price jumped to $438 after $120 million in USDT was linked to suspected laundering activities, prompting Tether to freeze $72 million.
Monero's price surged to $438 following the movement of approximately $120 million in USDT stablecoins through a series of complex transactions, which appear to be linked to money laundering activities.
Investigation Reveals Significant Fund Transfers
Onchain investigator ZachXBT reported that a large, unidentified entity executed a series of swaps involving the stablecoins, which included significant buys of Monero. This surge in demand pushed Monero’s price from around $330 to a peak of nearly $438, illustrating the impact of limited liquidity on market dynamics.
The transactions began with the receipt of 120.2 million USDT on the Tron network. The entity then spread the funds across different platforms, converting a portion into Monero, a cryptocurrency known for its privacy features that obscure transaction details.
The notable buy orders for Monero resulted in a significant price increase, with the token trading around $382 on Friday, reflecting an 8% daily rise. Due to Monero’s generally low trading volume, such substantial purchases can lead to pronounced price shifts.
ZachXBT traced the remaining funds, revealing that over $12 million was directed to deposit addresses at the KuCoin exchange, while another $8 million was sent to instant swap services. These services allow quick cryptocurrency conversions often without identity checks.
Additionally, $8 million was transferred from Tron to Bitcoin and Ethereum networks using Near Intents, a tool for cross-chain swaps, further complicating the trail of the funds.
In response to these activities, Tether froze $72 million in USDT associated with the transactions, which are characteristic of money laundering tactics. The origin of the $120 million remains unclear, but the patterns observed suggest illicit fund movement, prompting Tether's intervention.
