Tether Partners With Chainalysis to Combat Illicit Activity

Last update:

May 3, 2024 00:14 EDT
| 1 minute read

Tether partners with Chainalysis to fight illegal activity

tether, The world’s largest stablecoin issuer, It announced that it has partnered with blockchain data platform Chainalysis to monitor secondary market activity and combat illegal activities.

Tether, which issues the USDT cryptocurrency pegged to the US dollar, said in a statement: Announcing new monitoring and analysis tools using Chainaosis. This tool has the ability to identify wallets that may pose a risk or may be associated with illegal or sanctioned addresses.

“Tether’s proactive efforts to monitor the secondary market for USDT, the world’s most popular cryptocurrency, has the potential to transform the entire ecosystem and make it a safer place to trade.” said Jonathan Levin, co-founder and chief strategy officer of Chainalysis. , in Blog post.

Monitor secondary market activity

Tesar goes on to explain:“Economic Market Activities” refers to transactions that occur within the broader ecosystem using USDT, beyond the limited entities that buy and sell USDT directly from Tether.

The new tool was created by Chainalies and will allow Tether to “systematically monitor transactions” and provide tight oversight of the USDT market. To use the tool, Tether can empower compliance professionals and investigators by being able to identify wallets that may pose a risk or may be associated with illegal or sanctioned addresses, Tether said. Stated.

Tether reports profit of $4.52 billion

Earlier this week, Tether reported record net income of $4.52 billion for the first quarter of 2024, a significant achievement for the company. TSignificant profits are mainly The company’s financial gains from Bitcoin and goldtotaling $3.52 billion, plus an additional $1 billion from operating income.

In December, US credit rating agency S&P Global announced that it had begun evaluating Tether’s ability to maintain its peg to the US dollar and assigned it a “constrained” rating of 4. The risk rating is between 1 and 5, with 5 attached. It is rated as weak. Tether is rated as weak due to lack of disclosed information.

A stablecoin is a cryptocurrency whose value is typically pegged to a fiat currency or commodity. Tether has been under scrutiny for years. The stablecoin was launched in 2014 and is the longest-existing and most widely circulated stablecoin. S&P noted that its price has been relatively stable in recent years, particularly over the past 12 months.

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