The largest stablecoin issuer, Tether, is taking significant steps in combating criminal activities in the cryptocurrency space. Tether recently announced the freezing of 32 addresses associated with criminal funds amounting to $870,000. This move further reinforces Tether’s commitment to ensuring the integrity and security of its stablecoin, USDT.
International Collaboration to Freeze Criminal Finances
Tether has been actively collaborating with law enforcement agencies worldwide to tackle cryptocurrency-funded terrorism and warfare. The company has partnered with 31 countries to freeze criminal finances, resulting in a total of $835 million in assets being frozen to date. By freezing an address, Tether restricts the ability to “send USDT” function of that wallet, effectively preventing the owner from transferring funds until the freeze is lifted.
“Tether’s ability to freeze and return stolen funds to legitimate users demonstrates the innovative new capabilities and level of security that blockchain technologies can bring to the global financial system.”
– Paolo Ardoino, Tether CEO
Tether’s proactive measures not only protect its users but also make it more challenging for criminals to exploit its stablecoin for money laundering purposes. By preventing fraud and facilitating the sanctions against bad actors, Tether contributes to the overall transparency and reputation of the cryptocurrency industry.
Past Instances of Support and Transparency
This isn’t the first time Tether has demonstrated its commitment to transparency and cooperation with law enforcement. In October of last year, Tether responded swiftly to a hack on Binance Smart Chain by blacklisting the offending address suspected of fraudulent activity. Moreover, they froze $46 million worth of USDT following a law enforcement request related to an FTX wallet during the exchange’s collapse in November.
Throughout these instances and up until October last year, Tether has worked closely with law enforcement agencies worldwide. Their collaboration has led to the freezing of over $360 million in assets, with $101 million either reissued or scheduled to be reissued.
“The prevention of bad actors from abusing integral financial networks and supporting global law enforcement in preventing crime, terrorism, and critical national security threats is a critical part of building modern payment systems.”
– Paolo Ardoino, Tether CEO
Blockchain Traceability as a Deterrent to Illicit Activities
Tether’s proactive measures and collaboration with law enforcement agencies highlight the traceability of blockchain transactions as a powerful deterrent to illicit activities. The ability to follow the movement of USDT and freeze it following appropriate legal proceedings and risk assessments showcases the potential of blockchain technologies in combating criminal use effectively.
Tether’s actions serve as a clear example of how the cryptocurrency industry can contribute to the prevention of crime, terrorism, and critical national security threats. By leveraging blockchain technologies and working in tandem with global law enforcement, Tether sets a precedent for building modern payment systems with enhanced security and transparency.
