Tether Freezes 32 Addresses Linked to Terrorism and Warfare
Tether, the world’s largest stablecoin issuer, has taken action against crypto-funded crime by freezing 32 blockchain addresses associated with terrorist groups in Israel and Ukraine. In collaboration with Israel’s National Bureau for Counter Terror Financing (NBCTF), Tether has frozen these addresses, which collectively hold $873,118.34 worth of assets.
The Power of Stablecoins
Unlike decentralized cryptocurrencies like Bitcoin and Ethereum, stablecoins such as Tether’s USDT are issued by centralized entities and backed by reserves of real-world assets. This centralized nature allows authorities to programmatically freeze users’ funds if requested, similar to traditional bank deposits.
Previous Actions and Compliance
Tether has previously utilized its freezing capabilities to combat DeFi hackers and phishing scammers, but it declined to freeze addresses linked to the privacy protocol Tornado Cash following U.S. Treasury sanctions. However, Tether has complied with 31 different agencies worldwide, freezing over $835 million in criminal-connected crypto.
The Traceability of Cryptocurrency Transactions
Tether CEO Paolo Ardoino emphasized that cryptocurrency transactions are not anonymous but rather highly traceable and trackable assets. Criminals using cryptocurrencies for illegal activities will inevitably be identified.
Crypto’s Role in Terrorism Financing
In the recent conflict between Hamas and Israel, Israeli authorities froze crypto accounts suspected of being tied to Hamas, including those on exchanges like Binance. Chainalysis data indicates that since 2019, crypto donations have helped Hamas secure tens of thousands of dollars in Bitcoin. Similarly, pro-Russian groups in the Russia-Ukraine conflict have raised over $2 million in Bitcoin and Ethereum for their war efforts.
Hot Take: Tether’s Fight Against Crypto-Funded Crime
Tether’s decision to freeze addresses linked to terrorist groups in Israel and Ukraine demonstrates its commitment to combatting crypto-funded crime. By collaborating with authorities and utilizing its freezing capabilities, Tether showcases the innovative security measures that blockchain technologies can bring to the global financial system.
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