Teter responded to the DOJ’s call for action by US lawmakers

Tether, the company behind the stablecoin Tether (USDT), in dealing with the request of the Department of Justice to intervene in connection with the illegal use of its stablecoin, letters of instruction to US lawmakers.

The communications were sent to members of the US Senate Banking, Housing and Urban Affairs Committee and the US House Financial Services Committee in 2011. November 16th and December 15th, detailing “Teter's commitment to combating illegal use of the stablecoin.”

The letters aim to respond to calls from Senator Cynthia Lammis and Representative Frances Hill from October, urging the DOJ to “carefully evaluate the extent to which Binance and Tether are providing material support and resources to support terrorism.”

The lawmakers said this after Hamas launched a coordinated attack on Israel on October 7, citing “massive terrorist financing” supported in part by illegal crypto transactions.

As part of the response, Tether said it has a Know Your Customer (KYC) program, a transaction monitoring system and a “preemptive approach” to identifying suspicious accounts and activity.

“We always assist law enforcement when they are asked to take action, and we are fully committed to continuing to actively work with agencies worldwide. Tether will assist in identifying and freezing addresses that are sanctioned, engaged in illegal activity or engaged in any activity. Such as the financing of attachments. ”

In addition, Tether uses intelligence tracking tools to continuously monitor customer activity to ensure customer feedback does not end with their onboarding. “Specifically, Tether uses the Reactor tool from Chainalysis and receives secondary market risk reports from this company. These monitoring tools are considered the main options for blockchain monitoring and are used by many US government agencies to monitor activity on the blockchain.”

Similarly, Tether announced on December 9 that the US Office of Foreign Assets Control (OFAC) has initiated a voluntary wallet-freeze policy, providing secondary market controls to stop activity related to persons sanctioned by Special Designated Nationals (SDN). ) list.

Previously, in 2022, Tether refused to actively bind wallets associated with illegal activity. However, a spate of attacks on crypto companies in the US and around the world prompted the company to rethink its strategy.

Tether CEO Paolo Arduino said: “Tether is committed to being a global partner with the US as we continue to assist law enforcement and expand the dominance of the dollar globally.

In the year A survey of crypto companies in the US by 2023 supports USDT's market share, which at the time of writing is set at $90 billion, according to CoinMarketCap.

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