Blockchain detective ZachXBT reported via Telegram on Friday that an address received 120.2 million USDT on the Tron network Thursday and quickly began splitting the funds. Part of the money was converted into privacy coin Monero (XMR), triggering a 33% price spike from $330 to $438. USDT is the largest stablecoin, and Tron is a popular chain for moving it with low fees.
Fund Movement: Multi-Chain Swaps and a Privacy Coin Buy
According to ZachXBT, the entity broke the stash into multiple directions. Some went directly into XMR — the buy orders were so large that they moved the market, sending the token to a high of $438. During European morning Friday, XMR traded around $382, still up 8% on the day. Monero's relatively thin order book makes it vulnerable to sharp moves from single large trades.
More than $12 million was traced to deposit addresses at KuCoin exchange, roughly $8 million went to instant swap services that often skip identity checks, and another $8 million moved off Tron onto Bitcoin and Ethereum networks via cross-chain tool Near Intents. Spreading assets across coins, exchanges, and blockchains is a classic tactic to break the on-chain trail.
Tether Intervenes: 72M USDT Frozen
Stablecoin issuer Tether stepped in and blacklisted an address still holding 72 million USDT, effectively freezing those tokens. Once blacklisted, they cannot be moved or cashed out. ZachXBT said Tether's move suggests the company concluded the funds were connected to illicit activity.
The original source of the $120 million remains unclear. But the pattern — rapid conversion into a privacy coin, use of instant swaps, and cross-chain jumps — matches money laundering methods. Monero's default privacy features make it a go-to for hiding fund flows. The price surge coincided almost perfectly with the on-chain movements, underscoring the market's sensitivity to such events.
The sudden XMR rally also highlights compliance risks: some exchanges have delisted privacy coins amid regulatory pressure. This incident could reignite scrutiny from regulators toward privacy-focused assets.