How to check a USDT transaction

Tether (USDT) is a special cryptocurrency in the category of stablecoins. As a rule, stablecoins are backed by fiat currencies and minimize risks and consequences of price volatility in the market. This makes them a convenient means for storing funds, transfers and payments. According to the official exchange rate, 1 USDT is equal to 1 US dollar, although small deviations are possible depending on the market demand and supply.

Tether, which issues USDT, claims that every token is fully backed by fiat assets, and publishes quarterly statements as evidence. However, many industry players still have doubts about the transparency and accuracy of this data.

Today, USDT is the leader among stablecoins in terms of market capitalization, which is about $119 billion. It also ranks first in terms of daily trading volume. The token is actively used for various financial transactions, including skating and lending on DeFi platforms. Apart from USDT, there are other stablecoins, such as USDC, BUSD, and TUSD, but these are much less popular. Besides, Tether issues stablecoins tied to other assets: EURT (tied to the euro), CNHT (tied to the Chinese yuan), and XAUT (tied to gold).

USDT’s popularity also entails rather high risks associated with using it. Therefore, the ability to track a USDT transaction to make sure it is secure is an important skill that all active users of digital assets should master. USDT transactions are checked via blockchain analytics, which allows you to monitor the movement of funds in networks and control risks of every transaction. Let us consider its basic tools.

1. Using blockchain explorers

Blockchain explorers can track transactions and addresses in real time. You just have to enter a hash (a transaction unique identifier) or wallet address in order to obtain detailed information about your transaction in USDT, its status and all related data that are essential for verification.

Examples of blockchain explorers:

• Etherscan (for the Ethereum network, ERC-20). This is one of the most popular tools for checking transactions in USDT issued in the Ethereum network.
• Tronscan  (for the TRON network, TRC-20). This one is used to check transactions in USDT issued on the basis of the TRC-20 standard.

2. Checking transactions via KYT services

To observe the AML (anti-money laundering) standards, transactions can be checked via platforms that support the KYT (Know Your Transaction) principle. These services analyze the level of risk for each transaction and help understand to which extent it is secure to interact with one address or another.

Examples of KYT services:

• Chainalysis. This is an analytical platform which allows you to check transactions on the basis of a large amount of data, detect possible violations of law, and prevent unintentional engagement in money laundering.
• Elliptic. Another service that provides detailed reports on transactions with the view to prevent fraud and counter illegal transactions. Elliptic offers integration with different blockchain networks, including those supporting stablecoins, such as USDT.

3. Using special services to monitor wallets

There are specialized services that allow you to track certain wallets and their transactions. For example, you can add a wallet address of your interest and receive notifications of activity on it.

Examples of these services:

• Whale Alert. This service monitors large transactions in different networks and informs you of significant transfers, including USDT transactions. This is useful for monitoring activity of large players.
• Blockchair. A universal blockchain explorer which allows you to track different blockchains, including Ethereum and TRON. With this service you can check not only a USDT transaction, but also the status of a wallet.

4. Platforms for checking cryptocurrency for legality

To check USDT for legality and prevent interactions with addresses that are associated with illegal activities, analytical platforms, such as Coinfirm, are used. They analyze the address’s history and whether it is related to suspicious transactions. This is particularly important when dealing with USDT, because many crypto exchanges and financial services do their own monitoring of transactions to meet the AML and KYC (Know Your Customer) requirements.

5. Checking transactions via exchange services

Some cryptocurrency exchanges provide internal tools for checking transactions and wallets. If you transfer USDT to or from an exchange, the platform can offer users its own solutions for checking whether the crypto is clean.

Examples of exchanges with these capabilities:

• Binance. Supports both ERC-20 and TRC-20 for USDT and provides tools for checking addresses and transactions related to platform users.
• Kraken. The exchange also has integrated tools to monitor USDT transactions in order to be AML and KYC compliant.

6. Analytical platforms

There are platforms that offer capabilities for extended analysis of transactions. For example, CipherTrace and Crystal Blockchain provide deep analysis of networks and connections between addresses in order to prevent the risk of fraud or use of dirty cryptocurrency.

1. Enter an appropriate explorer (for example, Etherscan or Tronscan).
2. Enter the transaction hash or wallet address in the search bar.
3. Click “Search” and the system will show you the transaction information: time, transfer amount, fee, and status.
4. To check the history of the wallet address, you can view all of its transactions completed.

Checking and tracking USDT transactions of various standards (ERC-20, TRC-20, and BEP-20) and in different blockchains are extremely important to avoid getting involved in suspicious transactions and ensure legal compliance. Using blockchain explorers, KYT services and analytical platforms can make sure that every transfer is secure and legal.

But what if you neglected to do this in time? Such carelessness may have a number of implications. For example, sending cryptocurrency without checking the address may result in losing it for fraud. In this case, you can try and solve the problem on your own or seek for help from our experts at SEVEN SENSES. We will do our best to recover your assets as part of our Cryptocurrency Incident Investigation service. Contact us if you encounter a scam, and if your problem can be solved, we will find the solution.