Tether announces wallet freeze policy for OFAC-sanctioned individuals
According to a blog post on December 9, stablecoin issuer Tether has announced another move to cooperate with law enforcement and regulatory agencies by initiating a voluntary wallet-freezing policy.
As of December 1st, Tether is imposing secondary market controls to stop activity related to sanctioned individuals on the US Office of Foreign Assets Control's (OFAC) list of Specially Designated Nationals (SDN). Companies and individuals held by sanctioned countries are included in the list.
According to Teter, the policy augments existing security protocols and is a “proactive effort to work more closely with international regulators and law enforcement agencies.”
Tether introduced a new policy to strengthen ecological security
Read more ⬇️https://t.co/kCCFhLflfb
— Tether (@Tether_to) December 9, 2023
The US Treasury Department has been using the list to crack down on crypto transactions linked to illegal activities, including the financing of terrorism and the illegal distribution of fentanyl.
Wallets previously added to the SDN list have been banned by Tether, a move that contradicts the company's previous stance on the matter. In August 2022, for example, Tether announced that it would no longer actively block Tornado Cash addresses unless directed by law enforcement. According to OFAC, individuals and criminal organizations have used Tornado Cash to launder more than $7 billion in cryptocurrency since 2019.
“By implementing a voluntary wallet address, by freezing new additions to the SDN list and freezing previously added addresses, we can further strengthen the positive use of stablecoin technology and promote a secure stablecoin ecosystem for all users,” said Paolo Ardono Masser.
The Hong Kong-based company is behind stablecoin Tether (USDT), which has seen its market capitalization peak in recent months amid a crackdown on crypto companies in the US. Currently, the market capitalization is at 90 billion dollars, which shows the strong demand for the stable coin, which accounts for nearly 70% of the market.
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