Tether commits to freezing addresses linked to sanctions as scrutiny over USDT misuse grows

Stablecoin issuer Tether told CryptoSlate that the steadfast would frost immoderate addresses linked to sanctioned entities.

This determination comes successful effect to reports indicating that immoderate authorities actors were leveraging Tether’s USDT tokens to circumvent US sanctions.

A spokesperson for the steadfast said:

“Tether respects the Office of Foreign Assets Control (OFAC) SDN database and is committed to moving to guarantee authorisation addresses are frozen promptly.”

Over the past year, the institution has proactively frozen addresses, holding important amounts of its integer assets progressive successful unlawful activities. For example, the steadfast froze 32 addresses holding $873,118.34 connected to illicit activities successful Israel and Ukraine past year.

Tether’s CEO Paolo Ardoino said these actions bespeak the firm’s committedness to establishing higher information standards wrong the emerging industry.

Tether’s USDT is the largest stablecoin by marketplace capitalization, with astir $110 cardinal circulating supply.

Bypassing restrictions

Despite Tether’s compliance endeavors, caller reports bespeak persistent exploitation of the USDT stablecoin by violent groups and sanctioned nations to evade restrictions.

For instance, Reuters reported that Venezuela’s state-owned lipid giant, PDVSA, was leveraging the USDT stablecoin for crude lipid and substance exports amid renewed US sanctions.

US Treasury Deputy Secretary Adewale Adeyemo precocious alerted Congress to Russia’s escalating adoption of alternate outgo avenues, specified arsenic Tether’s USDT stablecoin, to evade economical sanctions.

A United Nations study highlighted the prevalence of cryptocurrency-based wealth laundering, chiefly done Tether oregon USDT connected the TRON blockchain — with amerciable online gambling platforms arsenic premier facilitators.

These developments prompted US Senator Elizabeth Warren to advocate for robust regulatory measures encompassing anti-money laundering authorities for immoderate projected stablecoin regulations.

According to the lawmaker, excluding stablecoin issuers, alongside different DeFi intermediaries, from immoderate stablecoin legislation’s AML/CFT requirements would let atrocious actors to nett from the summation successful crypto trading activities that the instrumentality would provide.

The station Tether commits to freezing addresses linked to sanctions arsenic scrutiny implicit USDT misuse grows appeared archetypal connected CryptoSlate.