Tether Takes Action Against Illicit Activities in Cryptocurrency Industry
Tether, the stablecoin issuer, continues to demonstrate its commitment to combating illegal activities within the cryptocurrency industry. Recent actions taken against frozen USDT assets worth $5.2 million highlight Tether’s proactive stance in enforcing strict network controls and fighting money laundering.
- Tether identified and froze $5.2 million worth of USDT from 12 Ethereum wallets flagged as “USDT Banned Addresses.”
- The frozen funds were suspected to be linked to various phishing schemes, prompting Tether to take swift action.
Tether’s Vigilance and Partnership with Law Enforcement
Furthermore, Tether’s efforts extend beyond freezing funds to monitoring USDT addresses and blacklisting suspicious ones. The company’s proactive measures showcase its dedication to upholding network integrity and security:
- In collaboration with the US Department of Justice and the FBI, Tether seized $1.4 million from a tech support scam network earlier in 2024.
- In 2022, Tether blacklisted three Ethereum addresses holding over $150 million in USDT and froze $8.2 million in USDT from 215 Ethereum-based addresses in October of the same year.
US Government Scrutiny and Ripple CEO’s Speculations
Tether’s recent actions in freezing USDT assets come amidst rumors of potential scrutiny from the US government, particularly regarding the stablecoin’s use in money laundering. Ripple CEO Brad Garlinghouse’s comments have added to the speculation:
- Garlinghouse suggested that the US government is targeting Tether as the preferred cryptocurrency for illicit activities.
- In a podcast, Garlinghouse expressed concerns about regulatory action against Tether and its impact on the cryptocurrency ecosystem.
Response from Tether CEO and Collaboration with Law Enforcement
In response to Garlinghouse’s remarks, Tether CEO Paolo Ardoino defended the company’s actions and highlighted its collaborative efforts with law enforcement agencies:
- Ardoino criticized Garlinghouse as “uninformed” and highlighted Ripple’s SEC investigation and stablecoin competition with Tether.
- Tether has collaborated with 24 agencies across 40 countries, responding to requests to block wallets and mitigate risks associated with illicit activities involving USDT.
Hot Take: Tether’s Ongoing Battle Against Illicit Activities
Despite facing rumors of government scrutiny and competing stablecoins, Tether remains committed to combating illicit activities within the cryptocurrency industry. By freezing assets linked to money laundering and phishing schemes, Tether demonstrates its proactive stance in maintaining network security and integrity.
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