Tether Freezes Wallets Linked to Illicit Activities:
Tether, the issuer of the world’s largest stablecoin, USDT, has recently frozen 41 crypto wallets blacklisted by the US Office of Foreign Assets Control (OFAC). This measure has been described by Tether as a proactive step to ‘prevent any potentially abusive use of Tether tokens and strengthen security measures.’
Paolo Ardoino, CEO of Tether, called this policy a ‘strengthening of the close relationship’ the company has with global law enforcement and regulators.
‘By voluntarily freezing wallet addresses’ […] ‘we will be able to further enhance the positive use of stablecoin technology and promote a safer stablecoin ecosystem for all users,’
said Paolo Ardoino, CEO of Tether.
This decision is part of a series of similar actions taken by Tether, which has previously frozen funds associated with illegal activities.
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Several of the frozen wallets were previously involved in the use of the coin-mixing service Tornado Cash, one of which is associated with the $625 million Ronin bridge hack attributed to the North Korean hacking group Lazarus.
This latest move from Tether aligns with a growing trend of monitoring cryptocurrency transactions to prevent illegal activities such as terrorism financing and unauthorized distribution of fentanyl.
Tether also froze 32 wallets in October, linked to terrorism and conflicts in Ukraine and Israel, and froze $225 million last month as part of a human trafficking investigation by the US Department of Justice.
