- Tether stablecoin issuer froze two USDT addresses containing assets worth $344 million.
- The act was performed following identification by law enforcement agencies.
- Freezing of suspicious wallet addresses is part of Tether’s routine under the law.
Leading stablecoin issuer Tether has frozen two addresses holding $344 million, according to an announcement on its official website. By this action, the addresses have been prevented from further movement of funds.
When Can Tether Freeze Accounts?
Tether stated that it took action after US authorities shared information linking the addresses to unlawful activities. According to the stablecoin issuer, it can freeze accounts when they are identified as connected to sanctions evasion, criminal networks, or other illicit activity. Tether clarified that the latest development is not an isolated incident, but a routine part of the company’s response to lawful requests from authorities in the US and abroad.
For context, Tether partners with 340 law enforcement agencies across 65 countries. This partnership enables the firm to coordinate directly with investigators during active cases. It is an operational system that allows the stablecoin company to be proactive rather than reacting after funds have been dispersed.
Tether’s Zero-Tolerance Policy Toward Crime
In the meantime, Tether reaffirmed its zero-tolerance policy toward the criminal use of USDT and any of its other financial products. It stated that it continues to maintain the OFAC guidelines regarding the Specially Designated Nationals (SDN) list. The aim is to collaborate with law enforcement globally to identify and, upon request, freeze assets and prevent further movement when they are linked to illegal activity or illicit actors.
Tether’s cooperation with international law enforcement agencies has supported more than 2,300 cases globally, including over 1,200 tied to US law enforcement. It has also led to the freezing of $4.4 billion in assets, with those linked to US authorities accounting for over $2.1 billion.
Public Blockchain Enablements
It is worth noting that Tether’s activities are enabled by the fundamentals of public blockchains, which provide visible trails that investigators can use to track transactions. It allows the firm to flag wallets and freeze assets before they are moved further.
Tether CEO Paolo Ardoino said that the USDT is not a haven for illicit activity. He confirmed that his company acts swiftly when credible links to sanctioned entities or criminal entities are identified. According to Ardoino, when platforms fail to move quickly, enforcement breaks down, users are exposed, and trust erodes. He noted that Tether combines blockchain transparency with real-time monitoring and direct coordination with law enforcement to stop funds before they can move.
Related: Tether and Circle Freeze $2.49M Linked to Iranian Exchange Wallex
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
