Tether Freezes Wallets of Sanctioned Individuals
Tether, the company behind the world’s largest stablecoin, has taken the decision to freeze the wallets of individuals who are sanctioned by the U.S. Office of Foreign Asset Controls (OFAC). The move is aimed at preventing potential misuse of Tether tokens and enhancing security measures by aligning with global law enforcement and regulators. This strategic decision reflects Tether’s commitment to maintaining high safety standards and promoting a safer stablecoin ecosystem for all users.
Previous Hesitation to Freeze Wallets
While Tether has frozen funds associated with illicit activities in the past, it had been hesitant to freeze wallets interacting with the sanctioned protocol, Tornado Cash. However, following this recent announcement, blockchain records indicate that Tether has blacklisted Tornado Cash’s contract addresses.
Only 11 Sanctioned Addresses Hold USDT
Tether has frozen a total of 161 Ethereum wallets, although 150 of these wallets currently hold no USDT tokens. Among the remaining 11 wallets, over 3.5 million USDT tokens are held, with the majority concentrated in a single address. Notably, this address has been linked to a recent hack of the betting platform Stake.
Tether’s Bitcoin Bet Pays Off
In May 2023, Tether announced its plans to allocate up to 15% of net realized profits into Bitcoin on an ongoing basis. As a result of the recent surge in prices, Tether’s Bitcoin holdings have gained around 85%, or $1.1 billion since their acquisition.
Hot Take: Tether Strengthens Security Measures
Tether’s decision to freeze the wallets of individuals sanctioned by OFAC demonstrates its commitment to maintaining a safe and secure stablecoin ecosystem. By aligning with global law enforcement and regulators, Tether aims to prevent potential misuse of its tokens. This move also highlights Tether’s ongoing efforts to enhance security measures and promote positive usage of stablecoin technology. With the freezing of wallets associated with the sanctioned protocol, Tornado Cash, Tether takes a proactive stance in ensuring compliance and safety within the crypto industry.
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