Tether, a prominent player in the stablecoin sector of the cryptocurrency market, has recently unveiled a key initiative to bolster the security framework within the digital asset environment. The initiative involves the proactive freezing of Tether-holding wallet addresses that are associated with individuals and entities listed on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. This move is seen as a significant step in deterring illegal financial activities.
Intensifying Efforts Against Illegal Financial Activities
This new policy, which Tether instituted on December 1, 2023, enhances the company’s existing security measures and is in line with international regulatory standards. The action includes the freezing of both newly added and existing wallet addresses on the SDN List, underscoring Tether’s dedication to preventing its tokens from being misused.
Paolo Ardoino, Tether’s CEO, highlighted the strategic importance of this initiative. “We are deeply committed to ensuring the safety of our global ecosystem and furthering our collaboration with international law enforcement and regulatory bodies,” Ardoino remarked. He further noted:
“The implementation of this voluntary policy of freezing new and existing wallet addresses on the SDN List enables us to amplify the beneficial applications of stablecoin technology and foster a more secure environment for all participants.”
Tether has a history of taking action against suspicious transactions, having previously blacklisted several addresses. This includes the freezing of over 30 USDT addresses that transacted billions, as revealed by blockchain analytics company Chainargos. These efforts are part of Tether’s ongoing partnership with law enforcement agencies, such as the U.S. Department of Justice, to address illegal transactions.
In a significant move, Tether voluntarily immobilized $225 million in USDT funds linked to human trafficking networks in Southeast Asia, marking the largest freeze of its kind. Furthermore, the company confiscated $9 million from pig butchering scam operations, cooperating with the DOJ and U.S. Secret Service.
Tether’s USDT, a U.S. dollar-pegged token, is a leading stablecoin in the crypto market, with one of the highest transaction volumes and trading activities. Recently, USDT reached a notable market capitalization of $90 billion, with substantial activity on the Ethereum and Tron blockchains.
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