Tether’s Commitment to Security and Law Enforcement Cooperation
Tether, the company behind the USDT stablecoin, has publicly shared letters it sent to the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee, highlighting its dedication to security and close collaboration with law enforcement agencies.
In one of the letters, Tether CEO Paolo Ardoino emphasized the company’s decision to disable Tether tokens held in wallets associated with the Office of Foreign Assets and Controls (OFAC) sanction list. This action was taken to prevent potential misuse of its tokens and enhance security measures.
Tether claims to have assisted the Department of Justice, U.S. Secret Service, and Federal Bureau of Investigation (FBI) in freezing 326 wallets controlling a total of 435 million USDT. However, it appears that the latest frozen wallets contain a smaller number of tokens than previously reported.
Ardoino also revealed that Tether has onboarded the United States Secret Service onto its platform and is in the process of doing the same with the FBI. These partnerships demonstrate Tether’s commitment to collaborating with law enforcement agencies to ensure operational integrity and security.
The letters were specifically addressed to Senator Cynthia Lummis and were also sent to the chairs and ranking members of the respective committees. Tether’s communication with legislators aims to provide transparency regarding its interactions with law enforcement and efforts to comply with regulatory standards.
Tether Freezes Tokens of Sanctioned Individuals
Last week, Tether took action to freeze the wallets of individuals who have been sanctioned by the U.S. Office of Foreign Asset Controls (OFAC). This move is part of Tether’s efforts to align with global law enforcement and regulators in order to prevent potential misuse of its tokens and enhance security measures.
According to blockchain data, Tether froze a total of 161 Ethereum wallets, although 150 of these wallets currently hold no USDT tokens. Among the remaining 11 wallets, over 3.5 million USDT tokens are held, with the majority concentrated in a single address holding 3.4 million tokens. Notably, this address has been linked to a recent hack of the betting platform Stake.
Of the wallets holding USDT tokens, two addresses contain around 20,000 tokens each, while another holds nearly 60,000 tokens. The remaining wallets hold smaller amounts, with one wallet containing just 16 cents worth of frozen USDT.
Tether’s Bitcoin Bet Starts to Pay Off
In May 2023, Tether announced its plans to allocate up to 15% of net realized profits into Bitcoin on an ongoing basis. By holding BTC and other assets, Tether aims to protect its reserves from the loss of purchasing power during prolonged cryptocurrency market downturns.
Thanks to the recent surge in prices, Tether’s Bitcoin holdings have gained around 85%, or $1.1 billion, since their acquisition.
Hot Take: Tether’s Commitment to Security and Collaboration with Law Enforcement
Tether continues to demonstrate its commitment to security and collaboration with law enforcement agencies through its recent actions and partnerships. By disabling Tether tokens associated with sanctioned individuals and assisting in freezing wallets, Tether aims to prevent misuse and enhance security measures.
The company’s partnership with the United States Secret Service and ongoing collaboration with the FBI further solidify its dedication to maintaining operational integrity and security. Through transparent communication with legislators, Tether strives to provide clarity on its interactions with law enforcement and compliance efforts.
By
By
By
By