Tether reveals it blocked 32 wallet addresses linked to terrorist groups in Israel and Ukraine. To date, the USDT issuer has frozen more than $800 million worldwide. Binance collaborated with Israeli authorities to freeze accounts linked to Hamas
On Monday, USDT issuer Tether announced the freezing of 32 crypto wallet addresses. Together, these addresses contain $873,118 and are believed to be associated with “terrorism and war” related activities in Ukraine and Israel. The freezing of these crypto wallet addresses underscores the growing importance of regulatory compliance and security in the cryptocurrency space.
Stablecoin issuers, in particular, face increasing pressure from governments and financial institutions to ensure their digital assets are not used for illegal or harmful purposes. This measure also highlights the need to improve due diligence and monitoring of crypto transactions, as it can help detect and prevent potential misuse of digital currencies for nefarious activities.
No to Terrorism: USDT Account Blocking
Israeli police recently revealed that they have taken steps to freeze cryptocurrency accounts that were used for the purpose of soliciting donations for Hamas through various social media platforms.
The attack, carried out by the terrorist group on October 7, led to the loss of 1,300 lives in Israel. Israel’s National Terrorist Financing Office has reportedly been working with Tether, the company behind the world’s largest stablecoin, on their joint venture.
Tether CEO Paolo Ardoino emphasized that blockchain platforms simplify the tracking of cryptocurrency transactions, allowing Tether to help prevent the use of USDT associated with terrorist financing.
Cryptocurrencies primarily operate beyond the boundaries of the conventional financial system, and the use of wallet addresses with pseudonymous characteristics makes it difficult to track the people responsible for transactions.
“Contrary to popular belief, cryptocurrency transactions are not anonymous; they are the most traceable assets,” Ardoino said.
“Tether remains committed to promoting the responsible use of blockchain technology and positioning itself as a strong defense against cybercrime. We eagerly anticipate continued collaboration with global law enforcement agencies as part of our commitment to global security and integrity,” Ardoino further explained.
In a blog post published in February, TRM Labs, a prominent blockchain analysis firm that collaborates with law enforcement authorities, stated that USDT has become a preferred currency to facilitate terrorist financing.
Collaborative Efforts with Binance: Disrupting Terrorist Financing
In the latter part of 2022, Tether implemented an asset freeze totaling over $360 million. The company subsequently reissued more than $100 million worth of USDT that had previously been intercepted.
In a broader context, these actions reflect a growing trend within the cryptocurrency space. Binance, another major player in the industry, has been actively collaborating with Israeli authorities to freeze cryptocurrency accounts associated with the Hamas group, thereby disrupting its financial resources critical to its operations.
Binance’s efforts also resulted in the seizure of 190 accounts linked to Islamic terrorist activities, underscoring the cryptocurrency sector’s commitment to addressing global security concerns and preventing the potential misuse of digital assets for illicit purposes.
Since the Russian invasion last year, cryptocurrencies have been widely used in Ukraine, with Kyiv raising more than $100 million in cryptocurrency after soliciting donations. Pro-Russian militants have used cryptocurrencies to raise funds in eastern Ukraine, according to blockchain researcher Chainalysis last year.
USDT, issued by Tether, is the largest stablecoin by market cap, with a current valuation of $83 billion.
By Audy Castaneda
