Tether Vows to Freeze Sanction-Linked Addresses Amid USDT Scrutiny

As a strict monitoring against abuse, USDT on Tether As stablecoin attacks intensify, the company promises to take firm action against addresses associated with sanctions violations.

Tether, the issuer of the popular USDT stablecoin, announced a commitment to freeze addresses associated with sanctioned entities. This proactive stance follows reports indicating the misuse of his USDT token by certain state actors to evade US sanctions.

“Tether respects the Office of Foreign Assets Control (OFAC) SDN list and is committed to ensuring that sanctioned addresses are promptly frozen,” a Tether spokesperson said.

Over the past year, Tether has actively frozen addresses holding significant amounts of digital assets that have been involved in illegal activities. For example, the company froze 32 addresses containing $873,118.34 related to illegal activities in Israel and Ukraine.

Tether CEO Paolo Ardoino emphasized that these actions confirm the company’s dedication to establishing strong safety standards within the emerging cryptocurrency industry.

Despite Tether’s compliance efforts, recent reports highlight ongoing abuse of the USDT stablecoin by terrorist groups and sanctioned countries seeking to circumvent restrictions. Venezuela’s state-owned oil giant PDVSA reportedly used USDT to export crude oil and fuel amid renewed US sanctions. Additionally, Russia is increasingly turning to alternative payment methods, including Tether’s USDT stablecoin, to circumvent economic sanctions, according to U.S. Deputy Treasury Secretary Adewale Adeyemo.

The UN report also reveals the prevalence of cryptocurrency-based money laundering, with Tether’s USDT on the TRON blockchain becoming a preferred option, especially within illegal online gambling platforms.

In response to these developments, US Senator Elizabeth Warren has advocated for strict regulatory measures, subjecting stablecoin issuers and other decentralized finance (DeFi) intermediaries to anti-money laundering (AML). underlined the importance of including and combating financing of terrorism (CFT) requirements. It is not included in the proposed stablecoin regulations. Barring such entities, she argues, could allow Warren to exploit the increased cryptocurrency trading activity facilitated by the law.

Featured image: Freepik

Please see our disclaimer

Related Article

0 Comments

Leave a Comment