- Tether is stepping up its efforts to fight crime.
- The stablecoin issuer is pledging total cooperation with law enforcement.
- Tether has onboarded the Secret Service and the FBI to prove its allegiance.
Tether’s newly appointed CEO, Paolo Ardoino, is all hands on deck, combating the misuse of its stablecoins for illicit activities and enhancing the integrity of the crypto space. After implementing a new wallet-freezing policy that targeted individuals on the SDN listโresulting in the freezing of over 200 walletsโthe stablecoin issuer is looking to take things up a notch.
In a recent letter shared with US legislators, Tether CEO expanded on his vision to prevent malicious actors from exploiting the company’s stablecoins, which includes onboarding law enforcement heavyweights the Secret Service and the FBI.
Tether Reiterates Commitment to Fighting Crime
On December 15, Tether, the company behind USDT, detailed its unwavering commitment to curbing the illicit use of its stablecoins in letters addressed to members of the US Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee.
Sponsored
Emphasizing its dedication to building a sustainable and resilient infrastructure, Tether pledged full cooperation with law enforcement in the fight against terrorist financing and other illicit activities.
In the letter, Tether CEO Paolo Ardoino expanded on the firm’s recent efforts in fighting crime, highlighting its new wallet-freezing policy, which helped law enforcement restrict access to over 200 wallets, freezing over 3.5 million USDT.
The stablecoin company noted its assistance to the US Department of Justice, the US Secret Service, and the FBI as a ‘tangible example’ of its relationship with law enforcement agencies, sharing that it helped freeze 326 wallets, totaling over $435 million.
To further prove its commitment to assisting law enforcement, Tether’s CEO announced in the letter that it had onboarded the US Secret Service and is doing the same with the FBI.
Tether’s letter comes on the heels of US Senators urging the DOJ to put the stablecoin under its magnifying glass.
US Senators Urge DOJ to Take Action Against Tether
In a letter addressed to US Attorney General Merrick Garland on October 26, Senator Cynthia Lummis and Representative French Hill asked the DOJ to arrive at a “charging decision on Binance” and “expeditiously conclude” investigations into Tether’s alleged involvement in illicit activities.
The lawmakers alleged that Binance and Tether actively provided material support and resources to enable crypto-funded terrorism through circumvention of applicable sanctions laws and violations of the Bank Secrecy Act.
The lawmakers also claimed that the stablecoin issuers had failed to conduct adequate screenings despite being aware that extremist groups leveraged its stablecoins to facilitate terrorism and other illicit activities.
On The Flipside
- Tether’s new CEO appointment coincides with a challenging period as the stablecoin issuer grapples with increased scrutiny from lawmakers over allegations of terror financing.
- Thanks to its new wallet-freezing policy, Tether successfully froze the USDT held by the Ledger hacker, recovering over $600,000 in losses.
Why This Matters
Terror financing, money laundering, and other illicit activities overshadow the crypto industry, setting it back by a few years. Tether’s cooperation with law enforcement in fighting against the misuse of its stablecoins is much-needed and is positive for the long term. However, it could open doors to unwarranted centralization.
Read why Solana Phones suddenly sold out after registering underwhelming sale numbers:
Solana Phones Vanish From Shelves as BONK Hype Takes Flight
Read more on Cardano’s remarkable performance:
Cardano (ADA) Prints Double Digit Gains While Market Stalls
