Tether, the company behind the popular stablecoin USDT, has publicly released letters it sent to the U.S. House of Representatives Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs to reaffirm its commitment to openness. Legal Compliance.
Taking a proactive approach to maintaining the integrity of the cryptocurrency ecosystem, Tether strengthens its commitment to combat the misuse of stablecoins for illegal operations under the direction of newly appointed CEO Paolo Ardoino. I did.
Tether Freezes 200 Wallets: A Compliance Triumph
In a calculated move, the organization implemented a new wallet freeze policy targeting people on the Specially Designated Nationals list.
As a result of this bold action, over 200 wallets were frozen, demonstrating the company’s commitment to maintaining compliance and deterring potential criminals.
This letter was written on November 16 and is a response to letters sent to Senator Cynthia M. Lummis and Representative J. French Hill.
#rope In ~ #action. The platform hires the FBI and freezes the accounts of users who use: #rope About illegal activities!!
1⃣ In a letter recently shared with U.S. lawmakers, Tether’s CEO detailed how he prevents unsavory individuals from using the company’s USDT… https://t.co/BuYdq9ggwq pic.twitter.com/XCso56D5IB
— Flip the Chain (@flipthechain) December 16, 2023
This letter follows the first letter from Lummis and Hill to Atty. On October 26, General Merrick Garland expressed concerns about the possibility that stablecoins could be used for illicit purposes, including money laundering and terrorist financing.
USDT market cap currently at $90.8 billion on the weekend chart: TradingView.com
Tether claims that through cooperation with law enforcement agencies, including the Department of Justice, the U.S. Secret Service, and the Federal Bureau of Investigation, it has succeeded in freezing 326 wallets totaling 435 million USDT to date.
Accepted wallet support discontinued due to Tether
Although the latest set of frozen wallets appear to hold a smaller amount of tokens than previously indicated, Tether emphasizes that it actively supports law enforcement agencies seeking to stop illegal activity in the cryptocurrency space.
Ardoino said:
“Tether remains steadfast in its commitment to support law enforcement efforts and help victims recover. “We condemn the misuse of USDT or any cryptocurrency for illicit purposes and are committed to cooperating with law enforcement agencies around the world.”
Tether blocked the wallets of people who were sanctioned by the U.S. Office of Foreign Asset Controls last week. At the time, the company said it hoped to work with international law enforcement and authorities to strengthen security measures and prevent possible misuse of its tokens.
Tether has frozen a total of 161 Ethereum wallets, but according to blockchain statistics, 150 of these wallets do not currently contain USDT coins.
The cryptocurrency sector has been overshadowed for several years by money laundering, terrorist financing, and other nefarious activities. It is essential that Tether cooperates with law enforcement to prevent misuse of stablecoins.
Featured image from iStock