Tether, the stablecoin issuer, has announced that it has frozen $835 million in assets associated with various criminal activities. The majority of these funds are linked to theft resulting from blockchain and exchange hacks, with smaller portions connected to other illicit activities. Tether has been actively cooperating with 31 law enforcement agencies worldwide and assisting in investigations across 19 jurisdictions.
The company has collaborated with countries such as Brazil, Singapore, the Philippines, Germany, South Korea, Norway, Poland, Switzerland, Greece, Canada, and the United States in its efforts to combat illicit activities.
In a recent press release, Tether revealed that it had frozen 32 addresses containing $873,118.34 that were found to have connections to terrorism and warfare in Israel and Ukraine. The stablecoin issuer has been working alongside the National Bureau for Counter-Terror Financing of Israel (NBCTF) to address cryptocurrency-funded terrorism.
While the amount frozen by Tether represents only a small fraction of the global cost of cybercrime, the company emphasizes its commitment to using blockchain technology to enhance the security and integrity of the global financial system.
Tether’s newly appointed CEO, Paolo Ardoino, stated that cryptocurrency transactions are not anonymous and can be traced on the blockchain. He emphasized that criminals who use cryptocurrencies for illegal activities will eventually be identified.
This is not the first time Tether has frozen funds associated with malicious entities. In previous instances, the company froze millions of USDT linked to phishing scams and protocol exploits.
In September, Tether made a strategic investment in German-listed Bitcoin miner Northern Data Group as part of its expansion efforts. Despite market fluctuations, USDT has continued to experience significant growth on exchanges.
Paolo Ardoino’s appointment as CEO marks a significant management change for Tether as it navigates its expansion plans and continues its commitment to combating illicit activities in the crypto space.
Hot Take: Tether’s Actions Highlight the Power of Blockchain Technology in Combating Crime
Tether’s recent actions to freeze funds associated with criminal activities demonstrate the potential of blockchain technology to enhance security and traceability in the global financial system. By actively cooperating with law enforcement agencies and collaborating with countries worldwide, Tether is working to combat illicit activities and promote the responsible use of cryptocurrencies.
The appointment of Paolo Ardoino as CEO further solidifies Tether’s commitment to its expansion efforts and its dedication to maintaining the integrity of the crypto market. As Tether continues to freeze funds linked to malicious entities, it sends a strong message that cryptocurrencies are not a safe haven for criminals.
While challenges remain in addressing cybercrime and illicit activities in the crypto space, Tether’s actions serve as a reminder that blockchain technology can provide valuable tools for tracking and preventing illegal transactions. As the industry evolves, it is crucial for stablecoin issuers and exchanges to prioritize security measures and collaborate with regulators and law enforcement agencies to ensure a safe and transparent financial ecosystem.
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