Tether and Chainalysis roll out USDT monitoring solution to counter illicit transactions

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Tether has announced a partnership with blockchain analytics firm Chainalysis to develop a customizable solution for monitoring secondary market activity.

The monitoring solution developed by Chainaosis will enable Tether to systematically monitor transactions and enhance the understanding and monitoring of the USDT market. It also serves as a proactive source of on-chain intelligence for Tether compliance professionals and investigators, identifying wallets that may pose a risk, or that may be associated with illegal or sanctioned addresses. Helps identify a particular wallet.

Key components of the solution include sanctions monitoring, which provides a detailed list of addresses and transactions involving sanctioned entities, as well as a thorough classification of USDT holders by type, including exchanges and darknet markets. Contains classification functions that enable

The system also features Max Wallet Analysis, which provides a detailed look at major USDT holders and their activities, and Illegal Transfer Detection, which is essential to identify transactions that may be related to illicit categories such as terrorist financing. Offers.

“Cryptocurrencies are transparent, and using that transparency to partner with law enforcement and freeze criminal funds is the best way to stop the use of cryptocurrencies for terrorism, fraud, and other illegal activities.” ,” said Jonathan Levin, co-founder and chief strategy officer at Chaineries.

The move comes amid growing pressure on stablecoins and digital assets, with global regulators eyeing them for their potential role in circumventing international sanctions and facilitating illicit finance. .

As the most popular stablecoin with over $110 billion in circulation, USDT is facing increased scrutiny from regulators. Tether claims the partnership will enable it to “strengthen compliance measures.” The stablecoin is pegged to the US dollar, primarily backed by US Treasuries, and managed by Wall Street trading firm Cantor Fitzgerald.

“Tether is steadfastly committed to maintaining the highest standards of integrity, and this partnership strengthens our proactive approach to protecting our ecosystem from illegal activity,” said Paolo Ardoino, CEO of Tether. says Mr.

Recent report Reuters suggests Venezuela’s state-run oil company is using USDT to bypass US sanctions, while a UN report in January highlighted the alleged role of stablecoins in underground banking and money laundering in East and Southeast Asia. In particular, Tether has worked with 124 law enforcement agencies across 43 jurisdictions around the world to address concerns regarding the use of stablecoins for illegal activities.

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