Tether Takes Action Against Terrorism and Warfare
Tether, the issuer of the Tether (USDT) stablecoin, has made a significant move in combatting terrorism and warfare by blocking 32 wallet addresses in Israel and Ukraine. These wallets collectively hold $873,118. Tether, with its $83.6 billion market cap, is working alongside Israel’s National Bureau for Counter-Terror Financing (NBCTF) to address the growing threat of cryptocurrency-funded terrorism.
Response to Recent Hamas Attack
The decision to block these wallets comes as a response to a recent attack by Hamas on Israel, resulting in the tragic loss of 1,300 lives. In cooperation with Binance, Israeli police seized crypto accounts used by Hamas to receive funding through social media. The transferred funds were then received by the Israeli government treasury.
Tether’s Proactive Approach
Recognizing the challenges of tracking transactions in the pseudonymous cryptocurrency space, Tether has taken a proactive approach to block suspicious wallet addresses. TRM Labs, a US blockchain analysis firm, reported a significant increase in Tether’s use among terrorist-financing entities it monitors in 2022, surpassing Bitcoin’s rise.
Tether had previously frozen USDT funds in Israel in March 2023, and the first freeze associated with Ukraine occurred in 2021. However, there is no information available regarding the owners of these wallet addresses or their activities.
Cutting Off the Funds
In a parallel development, Israeli police, in collaboration with Binance, seized crypto accounts belonging to Hamas groups that were used to solicit donations following their attacks on Israel. These funds were then transferred to the Israeli government treasury.
Global Cooperation Needed
The fight against cryptocurrency-funded terrorism and warfare requires global cooperation and collective efforts.
Hot Take: Tether Takes a Stand Against Terrorism and Warfare
Tether’s decision to block suspicious wallet addresses in Israel and Ukraine demonstrates its commitment to combating terrorism and warfare financed through cryptocurrencies. By partnering with Israel’s National Bureau for Counter-Terror Financing (NBCTF) and working alongside law enforcement agencies like the Israeli police and Binance, Tether is taking a proactive approach to disrupt illicit funding channels. The rise in Tether’s use among terrorist-financing entities highlights the need for increased vigilance and regulation in the crypto space. As the fight against crypto-funded terrorism continues, global cooperation will be essential to effectively address this growing threat.
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