Tether taps Chainalysis to track USDT activity on secondary markets

Stablecoin issuer Tether has announced a partnership with blockchain forensics firm Chainalysis to develop tools to monitor secondary market activity.

Tether has signed a partnership agreement with New York-based blockchain intelligence firm Chaineries and plans to increase oversight of the USDT market.in Blog announcement On May 2, Tether announced that the solution created by Chainalysis would serve as a “proactive source of information” for compliance investigators and “identify wallets that may pose a risk, or address illegal or sanctioned addresses.” “It will be possible to identify potentially related wallets.”

“Our partnership with Chainalysis is a pivotal step in our continued efforts to establish transparency and security within the crypto industry.”

Tether CEO Paolo Ardoino

The tools developed by Chainalies include features such as sanctions monitoring, which provides a list of addresses and transactions involving sanctioned entities.

Additionally, we categorize USDT holders by type and distinguish between exchanges and darknet markets. In addition, the tool also has fraudulent transfer detection capabilities, allowing the identification of transactions that “may be related to illicit categories such as terrorist financing,” Tether added.

The partnership comes as U.S. senators have raised concerns about the potential for countries such as Russia, Iran, and North Korea to misuse Tether’s stablecoin to circumvent Western sanctions.

As previously reported by crypto.news, allegations have surfaced that USDT has allowed Russian companies to circumvent sanctions and source parts for drones and other equipment overseas. As a result, senators questioned whether the Pentagon and the Biden administration supported the Treasury Department’s request for more authority.

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