Tether Takes Action: Blocks $873,000 USDT Linked to Terrorism in Ukraine and Israel

Tether Blocks $873,000 in Stablecoins Linked to Terrorist Activities

Tether, the largest issuer of stablecoin in the crypto market, announced that it has blocked 873,000 USDT believed to be funding terrorist activities in Ukraine and Israel. This comes after Binance froze several Hamas-linked accounts last week. Tether was able to freeze 32 addresses involved in illicit activities with the help of the Israeli National Bureau for Terrorist Financing.

Freezing Cryptographic Addresses

Tether does not have the power to freeze an entire crypto wallet, but it can block the “send USDT” function for individual wallets. Critics argue that this amounts to collective censorship by a single entity. However, Tether claims it is acting in good faith to stop criminal entities from exploiting cryptocurrencies’ pseudo-anonymity. The company believes that digital currencies are wrongly associated with money laundering and illicit activities.

Cryptocurrency Transactions are Traceable

According to Tether’s Paolo Ardoino, cryptocurrency transactions are not anonymous but rather traceable and trackable on the blockchain. He emphasizes that criminals who use cryptocurrencies for illegal activities will inevitably be identified due to the transparent nature of blockchain technology.

Hot Take: Tether Takes Action Against Terrorist Funding

Tether has taken a proactive stance against terrorist financing by blocking stablecoins linked to illicit activities in Ukraine and Israel. By freezing specific addresses involved in these activities, Tether is demonstrating its commitment to ensuring that cryptocurrencies are not used for criminal purposes. Critics argue that this action represents collective censorship; however, Tether maintains that it is acting in good faith to prevent misuse of its stablecoin. The company highlights the traceability of cryptocurrency transactions on the blockchain and asserts that criminals who attempt to use digital currencies for illegal activities will be identified. Tether’s efforts contribute to a safer and more secure crypto market.