Tether Freezes Wallets of Sanctioned Individuals
Tether, the company behind the world’s largest stablecoin, has taken the voluntary step of freezing the wallets of individuals sanctioned by the U.S. Office of Foreign Asset Controls (OFAC), according to an announcement made today. The move is aimed at preventing potential misuse of Tether tokens and strengthening security measures within the ecosystem. Existing wallets on the OFAC list, as well as any new ones added in the future, will be frozen. This action marks one of the first significant moves made by CEO Paolo Ardoino since taking over this month, and it demonstrates Tether’s commitment to working closely with global law enforcement and regulators.
Tether’s Stance on Sanctioned Protocol Tornado Cash
While Tether has frozen funds related to unlawful activity in the past, it had previously refrained from freezing wallets associated with sanctioned protocol Tornado Cash due to a lack of requests from U.S. law enforcement. However, after today’s announcement, blockchain records reveal that Tether has blacklisted Tornado Cash’s contract addresses.
Hot Take: Tether Strengthening Security Measures
Tether’s decision to freeze wallets of individuals sanctioned by OFAC showcases its dedication to preventing potential misuse of its tokens and enhancing security within its ecosystem. By actively cooperating with global law enforcement and regulators, Tether is demonstrating its commitment to maintaining a secure environment for crypto transactions. This move aligns with their previous actions against unlawful activity and emphasizes their proactive approach in combating financial crime.
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