Tether Implements Voluntary Wallet-Freezing for OFAC Sanctioned List

• Tether has already confined wallets that were previously included to the SDN List.
• This policy is a part of its ongoing efforts to cooperate with regulatory authorities.

Tether, the stablecoin issuer, said on December 9 that it is launching a voluntary wallet-freezing policy as part of its ongoing efforts to cooperate with regulatory and law enforcement organizations.

Tether has been imposing restrictions on the secondary market to block transactions with Sanctioned individuals on the OFAC Specially Designated Nationals (SDN) List since December 1st. The list includes both persons and companies that are owned or controlled by sanctioned nations.

Augmenting Current Security Standards

Moreover, Tether claims that this policy is an initiative to proactively collaborate even more closely with worldwide regulators and law enforcement organizations, and that it will augment current security standards.

In an effort to restrict cryptocurrency transactions linked to illicit activity, including as terrorist financing and illicit fentanyl trafficking, the U.S. Department of the Treasury has started using the list.

In a move that goes against the company’s past stances on the topic, Tether has already confined wallets that were previously included to the SDN List.

As an example, Tether said in August 2022 that it would not proactively freeze sanctioned Tornado Cash addresses unless commanded to do so by authorities. Since 2019, criminal groups and individuals have laundered approximately $7 billion worth of crypto via Tornado Cash, according to the OFAC.

Paolo Ardoino, CEO of Tether stated:

“By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users.”

Despite the ongoing crackdown on crypto businesses in the US, the market value of the stablecoin Tether USDT has hit record highs.

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