Monday, 18 December 2023
by Rose White
Tether, the company that created the popular stablecoin USDT, has taken the initiative to publicly reveal letters it sent to the US House Financial Services Committee and the US Senate Committee on Banking, Housing, and Urban Affairs in an attempt to reaffirm its commitment to openness and legal compliance.
Tether, which has taken a proactive approach to maintaining the integrity of the cryptocurrency ecosystem, has increased its commitment to fighting the exploitation of its stablecoins in unlawful operations under the direction of Paolo Ardoino, its newly appointed CEO.
As part of a calculated move, the organization implemented a novel wallet-freezing policy that targeted persons on the Specially Designated Nationals list.
As a result of this audacious move, over 200 wallets were frozen, demonstrating the company’s commitment to upholding compliance and discouraging possible wrongdoers.
This letter is in response to one that was written on November 16 and is addressed to Senator Cynthia M. Lummis and Congressman J. French Hill.
1⃣In a recent letter shared with U.S. legislators, Tether’s CEO has elaborated on his methods to prevent unsavory individuals from using the company’s USDT… https://t.co/BuYdq9ggwq pic.twitter.com/XCso56D5IB
— Flip The Chain (@flipthechain) December 16, 2023
The correspondence comes after Lummis and Hill’s first letter to Atty. Gen. Merrick Garland on October 26, in which they expressed their concerns about the possible use of stablecoins for money laundering and terrorist financing, among other illegal purposes.
Tether claims that it has successfully frozen 326 wallets totaling 435 million USDT to date through cooperation with law enforcement organizations such as the Department of Justice, US Secret Service, and Federal Bureau of Investigation.
Although the latest set of frozen wallets seems to hold a lower quantity of tokens than the previously indicated amount, Tether emphasizes that it actively supports law enforcement in their efforts to stop illegal activity in the cryptocurrency field.
“Tether remains steadfast in its commitment to supporting law enforcement efforts and aiding victims in their recovery. We condemn the misuse of USDT or any cryptocurrency for illicit purposes and are fully committed to collaborating with global law enforcement agencies.”
Tether blocked the wallets of those who were under sanctions from the US Office of Foreign Asset Controls last week. At the time, the company stated that by coordinating with international law enforcement and authorities, it hopes to increase security measures and avoid potential misuse of its tokens.
Tether froze 161 Ethereum wallets in total, albeit 150 of these wallets do not currently contain any USDT coins, according to blockchain statistics.
The crypto sector was shadow-cast and set back a few years by money laundering, terrorism financing, and other nefarious activities. It is imperative that Tether collaborates with law enforcement to combat the misuse of its stablecoins.
Featured image from iStock