Tether, which has taken a proactive approach to maintaining the integrity of the cryptocurrency ecosystem, has increased its commitment to fighting the exploitation of its stablecoins in illegal operations under the direction of Paolo Ardoino, its new CEO.
Tether, the company that created the popular USDT stablecoin, has taken the initiative to publicly reveal letters it sent to the US House Financial Services Committee and the US Senate Committee on Banking, Housing and Urban Affairs, in an attempt to reaffirm its commitment to openness and legal compliance.
The largest company in the cryptocurrency sector has made public its recent letters to members of the Senate Banking, Housing and Urban Affairs Committee and the Financial Services Committee of the US House of Representatives. These outline “the commitment of “Tether in the fight against the illicit use of ‘stablecoins’.”
“Tether’s active role in assisting law enforcement includes partnerships with the US Department of Justice, the US Secret Service, and ongoing efforts to collaborate with the FBI,” the company said. in the letter, ensuring that the objective of this collaboration is to combat illegal activities and contribute to the recovery of funds.
Tether Freezes 200 Wallets: Compliance Triumph
As part of a calculated measure, the organization implemented a novel wallet freezing policy targeting individuals on the Specially Designated Nationals list. As a result of this bold move, more than 200 wallets were frozen, demonstrating the company’s commitment to maintaining compliance and deterring potential violators.
Ardoino wrote a letter in response to another that was written on November 16 and is addressed to Senator Cynthia M. Lummis and Congressman J. French Hill. It comes after Lummis and Hill’s first letter to the attorney. General Merrick Garland on October 26, in which they expressed concern about the possible use of stablecoins for money laundering and terrorist financing, among other illegal purposes.
Tether claims to have successfully frozen 326 wallets totaling 435 million USDT to date through cooperation with law enforcement organizations such as the Department of Justice, the US Secret Service, and the FBI.
Tether Stops Support for Authorized Wallets
Although the latest set of frozen wallets appears to contain a smaller number of tokens than the amount stated above, Tether emphasizes that it actively supports authorities in their efforts to stop illegal activity in the cryptocurrency field. Ardoino said the following:
“Tether remains firm in its commitment to support law enforcement efforts and help victims in their recovery. We condemn the misuse of USDT or any cryptocurrency for illicit purposes and are fully committed to cooperate with law enforcement agencies worldwide.”
Tether blocked the wallets of those under US Office of Foreign Assets Control sanctions last week. At the time, the company stated that by coordinating with international authorities and authorities, it hopes to increase security measures and prevent potential misuse of its tokens.
Tether froze 161 Ethereum wallets in total, although 150 of these wallets do not currently contain USDT coins, according to blockchain statistics. The cryptocurrency sector was overshadowed and set back a few years by money laundering, terrorist financing, and other nefarious activities.
Paolo Ardoino, new CEO of Tether, reiterated the company’s commitment to continue working closely with law enforcement. “Tether seeks to be a world-class partner for the US as we continue to assist law enforcement and expand the hegemony of the dollar globally,” he said.
By Leonardo Perez
