- Tether has intensified its efforts to combat cybercrime.
- The stablecoin issuer has introduced a new wallet-freezing policy that aligns with US regulations.
- The new policy looks to set a new standard for the crypto industry.
Over the past two months, the crypto industry has found itself facing intense heat from lawmakers, primarily over alleged links to illicit activities, especially terrorism funding. Amid mounting debates on the extent of crypto’s use in crime, stablecoin issuer Tether intensified its efforts to combat suspicious wallets in response.Â
As part of its continued dedication to enhancing the integrity of the crypto space, the stablecoin issuer has taken a major step towards safeguarding the crypto ecosystem, introducing a new wallet-freezing policy that targets sanctioned individuals.
Tether’s Crackdown on Cybercrime
Tether, the creator of the largest stablecoin in the market, has unveiled a new wallet-freezing policy that aligns with the US Office of Foreign Asset Controls (OFAC) regulations, mainly focusing on sanctioned persons on the Specially Designated Nationals (SDN) list.
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The initiative is one of the major key acts by Paolo Ardoino, who recently took the mantle of CEO after serving as the CTO. Ardoino has consistently emphasized Tether’s commitment to upholding rigorous safety standards and fostering relationships with global regulatory bodies.
The new policy is a strategic decision to prevent criminals from misusing USDT. It reinforces Tether’s dedication to regulatory compliance, positioning it as a leader in promoting a safer environment for stablecoin usage.
In adherence to its updated policy, Tether has taken proactive steps, freezing 41 wallets, including those linked to coin-mixing services like Tornado Cash. Notably, one of the frozen wallets was implicated in the $625 million Ronin Bridge Attack, which, according to the US Treasury Department, was executed by North Korean hacking group Lazarus.
On the Flipside
- Tether recently froze 32 wallets that were linked to terrorism and warfare in Ukraine and Israel.
- In November, Tether shared that it froze over 225 million USDT linked to an international human trafficking syndicate engaged in crypto romance scams.
Why This Matters
The crypto landscape has grappled with the tarnishing effects of cybercrime, terror financing, and money laundering. Tether’s new policy sets a new industry standard within the crypto industry and showcases the company’s readiness to collaborate with regulatory authorities in the ongoing fight against criminal activities.
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