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Stablecoin issuer startup Tether <a href="https://tether.to/en/tether-introduces-new-policy-to-strengthen-ecosystem-security/" data-type="link" data-id="https://tether.to/en/tether-introduces-new-policy-to-strengthen-ecosystem-security/" target="_blank" rel="noopener">froze</a> 41 wallets earlier today, with on-chain data <a href="https://etherscan.io/address/0x12d66f87a04a9e220743712ce6d9bb1b5616b8fc" target="_blank" rel="noreferrer noopener">showing</a> several of the crypto wallets used the services of <a href="https://crypto.news/tornado-cash-developers-charged-with-money-laundering-in-us/" target="_blank" rel="noreferrer noopener">Tornado Cash.</a>&nbsp; 
Tornado Cash is on Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) list. 
Tether made the move to halt the operations of the wallets with the help of data collected from blockchain intelligence company Chainargos. 
Ether crypto transactions data tracker Etherscan flagged one of the addresses, stating it was reportedly involved in the infamous Ronin Bridge hack. Collectively, the frozen virtual wallets <a href="https://financefeeds.com/tether-freezes-wallets-involved-in-suspicious-usdt-transfers/" target="_blank" rel="noreferrer noopener">moved most funds</a> in Staked USDT (STUSDT). 
Nonetheless, it is not the first time Tether froze wallets linked to warfare, as it ceased the operations of 32 crypto money holders related to the wars in Ukraine and Israel. As reported by CNBC, the wallets <a href="https://www.cnbc.com/2023/10/16/tether-freezes-crypto-wallets-linked-to-terrorism-in-israel-ukraine.html" target="_blank" rel="noreferrer noopener">held</a> a collective sum of $873,118. 
In October, Tether stated it had collaborated with 31 agencies in 19 different global jurisdictions, facilitating the freezing of approximately $835 million in assets related to illicit activities. Additionally, Tether complied with a lawful request by law enforcement to freeze USDT worth $46 million, reportedly belonging to the beleaguered crypto exchange FTX, back in November 2022. 
 You might also like: <a href="https://crypto.news/tether-treasurys-60m-transfer-to-whale-sparks-scrutiny/"> Tether treasury’s $60m transfer to whale sparks scrutiny </a> 
The stablecoin issuer came to a consensus on Dec. 1, 2023, to launch a wallet-freezing policy in addition to their existing security measures. 
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 Tether Introduces New Policy to Strengthen Ecosystem Security Read more ⬇️<a href="https://t.co/kCCFhLflfb" target="_blank">https://t.co/kCCFhLflfb</a>— Tether (@Tether_to) <a href="https://twitter.com/Tether_to/status/1733529506432880943?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 9, 2023</a>
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Tether stated the new policy will prevent sanctioned individuals and organizations present in OFAC’s SDN list.&nbsp; 
The startup said the policy showcases its drive to collaborate with global financial regulators and law enforcement. Furthermore, Tether seeks to offer customers using its secondary market sanction controls it uses to oversee the activities of wallets present on its platform. 
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 “This strategic decision aligns with our unwavering commitment to maintaining the highest standards of safety for our global ecosystem and expanding our close working relationship with global law enforcement and regulators” <cite>Paolo Ardoino, CEO of Tether</cite>
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Using the policy, Tether has reportedly frozen wallets that have been added to the SDN list. The <a href="https://crypto.news/us-treasury-challenged-over-tornado-cash-sanctions/" target="_blank" rel="noreferrer noopener">U.S. Treasury</a> has been using the list to crack down on crypto wallets making transactions related to illegal activities.&nbsp; 
 Read more: <a href="https://crypto.news/doj-captures-9m-in-tethers-usdt-from-pig-butchering-operation/"> DoJ captures $9m in Tether’s USDT from “pig butchering” operation </a>

New Tether security policy sees 41 crypto wallets frozen

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