The issuer stablecoin USDT — the company Tether — announced the start of a new policy to freeze wallets whose owners are under OFAC sanctions OFAC.
Tether Introduces New Policy to Strengthen Ecosystem Security
Read more ⬇️https://t.co/kCCFhLflfb
— Tether (@Tether_to) December 9, 2023
According to the press release, the “voluntary” initiative is aimed at safeguarding the crypto ecosystem and creating a safe and reliable user environment across the globe.
“This initiative is a proactive step within closer cooperation with regulators and law enforcement to ensure the safety of using the stablecoin,” said Tether.
Crypto wallets listed on the SDN are subject to freezing.
“This strategic decision aligns with our commitment to uphold the highest standards of security for our global ecosystem and to broaden engagement with global regulators,” said Tether CEO Paolo Ardoino.
In August 2022 Tornado Cash was added to the OFAC sanctions list, but Tether refused to block addresses associated with the crypto mixer without corresponding requests from authorities.
In November, the issuer of USDT froze 46,370,701 USDT on the TRON blockchain at the request of law enforcement authorities. At the same time, the company said there were no plans to bail out a Bitcoin exchange.
In October 2023, Tether froze 32 addresses totaling $873,118.34. The company linked them to illicit activity, financing of terrorism and the wars in Israel and Ukraine.
In November, Tether blocked around 225 million USDT linked to an international criminal syndicate. The amount frozen in the stablecoin was described as “the largest in history”.