Tether Implements Wallet-Freezing Policy Aligned with US Regulations
Zach Anderson Dec 11, 2023 07:25
Tether's wallet-freezing policy, in line with US OFAC regulations, is a proactive approach to cybercrime, setting a new standard in the crypto industry.
Tether, the most renowned stablecoin issuer, has made a big step in strengthening its collaboration with regulatory organizations and law enforcement agencies. Tether has implemented a voluntary policy to freeze wallet activity linked with people who are on the Specially Designated Nationals (SDN) List maintained by the United States Office of Foreign Assets Control (OFAC) as of the first of December. The following list contains persons and businesses that are controlled or owned by nations that have been sanctioned.
Tether has recently reinforced its commitment to the fight against cybercrime in response to the rising worries around the use of cryptocurrencies in illegal activities such as sponsoring terrorist organizations and the trafficking of illegal drugs. A proactive effort to engage closely with worldwide regulators and law enforcement is represented by this new wallet-freezing policy, which is a complement to the security protections that are already in place. In the past, Tether has adopted a less aggressive attitude, notably as in August 2022, when it said that it would not freeze sanctioned Tornado Cash addresses unless it was told to do so by law authorities.
It is believed that the implementation of this restriction was a deliberate choice made in order to prevent criminals from taking use of Tether's USDT stablecoin. Paolo Ardoino, the Chief Executive Officer of Tether, noted that the project will further improve the good application of stablecoin technology and create a safer environment for all users. In addition, the action taken by the corporation is a manifestation of its dedication to maintaining stringent safety standards and cultivating connections with regulatory organizations.
According to the new policy that Tether has implemented, 41 wallets have already been locked, some of which are connected to coin-mixing services such as Tornado Cash. Notable events include the freezing of wallets that were involved in the Ronin Bridge Attack, which was suspected to have been carried out by the North Korean hacker organization Lazarus. The attack was estimated to have cost $625 million. For more information, Tether has frozen wallets that are associated with terrorist organizations in Israel and Ukraine, as well as over 225 million USDT that are tied to an international human trafficking ring that is involved in crypto romance frauds.
With its most recent regulation, Tether has established a new benchmark for the cryptocurrency market, marking a significant change in the landscape of the cryptocurrency business. It indicates that the firm is prepared to work together with regulatory authorities in the fight against illicit activity. It also displays a commitment to strengthening the integrity of the cryptocurrency sector and protecting the ecosystem from being misused.
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