Tether Freezes 41 Wallets Linked to Tornado Cash
Stablecoin issuer Tether has frozen 41 wallets, many of which were found to have used the services of Tornado Cash, a company listed on the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) list. Tether made this move with the help of data provided by blockchain intelligence firm Chainargos. One of the addresses flagged by Etherscan, a tracker for Ether crypto transactions, was reportedly involved in the Ronin Bridge hack. Most of the frozen wallets held Staked USDT (STUSDT) funds.
Tether’s History of Freezing Wallets
This is not the first time Tether has frozen wallets associated with conflict. In the past, it halted the operations of 32 wallets related to conflicts in Ukraine and Israel, which held a total of $873,118. In October, Tether collaborated with 31 agencies across 19 jurisdictions to freeze around $835 million in assets connected to illicit activities. Additionally, Tether complied with a lawful request from law enforcement to freeze $46 million worth of USDT linked to crypto exchange FTX.
Tether’s New Wallet-Freezing Policy
Tether announced on December 1, 2023, that it would implement a wallet-freezing policy as part of its existing security measures. The policy aims to prevent individuals and organizations sanctioned by OFAC from using Tether’s platform. The startup stated that this policy demonstrates its commitment to working with global financial regulators and law enforcement agencies. It also intends to provide customers with secondary market sanction controls for overseeing wallet activities on its platform.
“This strategic decision aligns with our unwavering commitment to maintaining the highest standards of safety for our global ecosystem and expanding our close working relationship with global law enforcement and regulators.”
Paolo Ardoino, CEO of Tether
Tether’s Collaboration with US Treasury
Tether has frozen wallets that have been added to the SDN list, which the U.S. Treasury uses to target crypto wallets involved in illegal transactions. This collaboration with the Treasury demonstrates Tether’s dedication to combatting illicit activities within the cryptocurrency space.
Hot Take: Tether Takes Strong Measures Against Sanctioned Wallets
Tether’s decision to freeze wallets associated with Tornado Cash and other sanctioned individuals and organizations highlights its commitment to maintaining a secure ecosystem. By collaborating with blockchain intelligence firms and complying with lawful requests, Tether aims to foster a closer relationship with global law enforcement and regulators. This wallet-freezing policy adds an extra layer of security to prevent illicit activities within the stablecoin issuer’s platform. As Tether continues its efforts to crack down on illegal transactions, it reinforces its position as a responsible player in the crypto industry.
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