Tether (USDT) Defies Treasury’s Sanction, Says Freezing Tornado Cash Addresses Is Reckless

The issuer of Tether (USDT) has defied the recent sanction placed by the U.S. Treasury on Tornado Cash.

Tether Defies Treasury’s Sanction, Says Freezing Tornado Cash Addresses is Reckless

The issuer of Tether (USDT), the world’s most popular and most used stablecoin, has defied the recent sanction placed by the U.S. Treasury on Tornado Cash, a cryptocurrency mixer that masks transactions between wallets. 

Tether Defies Treasury Sanctions

Earlier this month, the United States Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash for facilitating the laundering of $7 billion worth of crypto since its creation in 2019.

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On Wednesday, August 24, Tether announced that it will not freeze the smart contract addresses linked to the recently sanctioned Tornado Cash.

Freezing Tornado Cash Addresses Could Be Reckless

Tether explained that freezing the addresses could be a “highly disruptive” and “reckless” move. The stablecoin issuer believes that the move could alert suspects of an impending law enforcement investigation.

In order to avoid abandonment of funds and jeopardize further evidence gathering, Tether has refrained from freezing smart contract addresses linked to the sanctioned crypto mixer. 

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Tether writes that if the assets are frozen (like Circle did) without instructions from U.S. authorities, the move could jeopardize the work of other regulators and law enforcement agencies around the world.

On the Flipside

  • Circle, the issuer of USD Coin (USDC) stablecoin, has blacklisted smart contract addresses linked to the sanctioned Tornado Cash.

Why You Should Care

Tether, a Hong Kong-based company, does not conduct its business in the United States, although it voluntarily follows certain U.S. regulations as a part of compliance.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia