Tether Collaborates with U.S. Authorities to Combat Unlawful Activities
Tether, the stablecoin issuer, is reaffirming its dedication to working with U.S. law enforcement and regulatory agencies in the fight against illegal cryptocurrency transactions. To further crack down on illicit activities, Tether has shared its recent letters with the U.S. House Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
Emphasis on KYC and Regulatory Compliance
In its communication to the committees, Tether highlighted its focus on know-your-customer (KYC) procedures and regulatory compliance. The company explained that it has established a dedicated Compliance Department and implemented a robust KYC/AML program. Additionally, Tether’s KYC program has undergone scrutiny by the IRS on behalf of FinCEN.
Use of Chainalysis Reactor Tool
Tether also disclosed its use of Chainalysis’ reactor tool to analyze blockchain transactions. This tool helps identify wallets associated with suspicious activities or funding for groups classified as terrorist organizations by the U.S. government, such as Hamas and Hezbollah. Tether proactively shares information about potentially suspicious transactions with law enforcement and anti-terrorist financing agencies.
Collaboration with Law Enforcement Agencies
In another letter addressed to Senator Cynthia Lummis and Representative J. French Hill, Tether revealed its collaboration with the U.S. Secret Service and Federal Bureau of Investigation (FBI). Together, they are tracking individuals using stablecoins for illicit purposes and working to return stolen funds to victims. Tether’s recent policy led to the freezing of 326 wallets holding approximately 435 million USDT in coordination with the US Department of Justice, Secret Service, and FBI.
A Commitment to Security and Industry Standards
Tether expressed its commitment to security and building relationships with law enforcement agencies. The company believes that collaboration between stablecoin providers and financial regulators should become the industry norm, setting a precedent for enhanced security measures in the cryptocurrency space.
Hot Take: Tether Strengthens Its Fight Against Illicit Crypto Activities
Tether is intensifying its efforts to combat unlawful cryptocurrency transactions by collaborating with U.S. law enforcement and regulatory authorities. The stablecoin issuer has shared letters with key committees, emphasizing its focus on know-your-customer procedures and regulatory compliance. Tether also uses Chainalysis’ reactor tool to analyze blockchain transactions and identify wallets associated with suspicious activities. The company actively cooperates with law enforcement agencies and anti-terrorist financing organizations to report potentially suspicious transactions. Additionally, Tether is working with the U.S. Secret Service and FBI to track individuals using stablecoins for illicit purposes and return stolen funds to victims. Tether’s dedication to security sets a standard for the industry, aiming to establish collaboration between stablecoin providers and financial regulators as the norm.
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