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Tether Holdings Ltd, the issuer of United States dollar-pegged stablecoin USDT, has <a href="https://tether.to/en/tether-introduces-new-policy-to-strengthen-ecosystem-security/" rel="noopener noreferrer nofollow">frozen about 41 accounts</a> linked to a special sanction list.&nbsp;
Notably, quite a number of these crypto accounts have been using Tornado Cash, the crypto mixer that was <a href="https://thecoinrise.com/tornado-cash-sanctioned-by-u-s-treasury-for-7b-money-laundering/" rel="noopener noreferrer nofollow">previously sanctioned</a> by the U.S Treasury Department’s Office of Foreign Assets Control (OFAC) over the laundering of about $7 billion.&nbsp;&nbsp;
The frozen accounts are yet to initiate any illegal activity although one of them is allegedly linked to the <a href="https://thecoinrise.com/ronin-attackers-reportedly-move-625m-to-bitcoin-network-after-sanctions-on-tornado/" rel="noopener noreferrer nofollow">Axie Infinity Ronin bridge exploit</a>. In a blog post, Tether regards its move as a proactive effort and a precautionary measure against such events.
<h2 id="b-tether-initiates-voluntary-wallet-freezing-policy-b-span-style-font-weight-400-span">Tether Initiates Voluntary Wallet-freezing Policy&nbsp;</h2>
Following a series of attacks on several crypto projects and the illegal use of crypto to circumvent regulatory frameworks, evade tasks, and finance terrorism, OFAC curated a Specially Designated Nationals (SDN) List. The wallet addresses of these suspicious actors including large terrorist groups were itemized on the said list.&nbsp;
In September 2022, five crypto addresses connected to an extremist Russian paramilitary group <a href="https://thecoinrise.com/treasury-department-adds-russian-paramilitary-groups-crypto-wallets-to-its-sanction-list/" rel="noopener noreferrer nofollow">were added to the SDN list</a>. In line with this development, Tether <a href="https://tether.to/en/tether-introduces-new-policy-to-strengthen-ecosystem-security/" rel="noopener noreferrer nofollow">initiated a new voluntary wallet-freezing policy</a> to combat activity connected with persons on this OFAC SDN List.
<h2 id="b-tether-looks-forward-to-regulation-safeguarding-stablecoin-usage-b">Tether Looks Forward to Regulation Safeguarding Stablecoin Usage</h2>
Tether claims that this is its strategy to ensure that the environment is secure and reliable for users globally. It is a way to supplement existing security protocols and in the long run, the stablecoin issuer expects that it brings the company closer to working with global regulators and law enforcement agencies on safeguarding stablecoin usage.
Paolo Ardoino, CEO of Tether said, &nbsp;“By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users.”
<h2 id="b-tether-and-binance-freeze-terrorist-wallets-b">Tether And Binance Freeze Terrorist Wallets</h2>
This is not the first time Tether has carried out such action on wallets on its platform. In October, 36 wallets linked to terrorism funding and warfare in Palestine and Israel were frozen by the stablecoin issuer. Binance equally carried out the same exercise on <a href="https://thecoinrise.com/binance-freezes-hamas-accounts-in-compliance-with-israeli-law-enforcement/" rel="noopener noreferrer nofollow">accounts associated with the Palestinian militant group Hamas</a>.
Ultimately, this shows the dedication of crypto companies to preventing the misuse of their respective platforms for illicit activities and ensuring compliance with international regulations.
The post <a href="https://thecoinrise.com/tether-freezes-41-wallets-linked-to-ofac-sanctions-list/" rel="noopener noreferrer nofollow">Tether Freezes 41 Wallets Linked to OFAC Sanctions List</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Tether Freezes 41 Wallets Linked to OFAC Sanctions List

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