After a prolonged period of resistance, Tether, the renowned stablecoin issuer, has shifted its stance towards complying with US sanctions laws. This decision marks a significant turnaround from their previous position in August 2022, where they refused to freeze Tornado Cash addresses following its addition to OFAC’s SDN list. Tether’s updated policy involves expanding its security protocols to freeze wallets associated with individuals and entities sanctioned by the US. As of now, Tether has frozen 161 wallets, some linked to the OFAC-sanctioned Tornado Cash service. This change is attributed to increased enforcement of US economic sanctions by OFAC, especially against foreign companies like Tether with US commercial activities. Tether describes this move as a “voluntary” step towards cooperation with US sanctions regulators. Additionally, this update follows criticism of cryptocurrencies being used for illicit activities, with Tether claiming it has worked with numerous law enforcement agencies to freeze assets tied to criminal activities, amounting to $835 million since its inception.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
