Tether, the world’s largest stablecoin issuer, has frozen 326 wallets containing $435 million worth of Tether (USDT) for the U.S. authorities, including the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the Secret Service. This move comes in response to concerns raised by Senator Cynthia M. Lummis and Congressman J. French Hill regarding the potential illicit use of stablecoins for activities such as money laundering and terrorist financing. Tether has committed to preventing the nefarious use of USDT and has implemented a wallet-freezing policy to assist law enforcement agencies in combating illicit activities.
Tether’s CEO, Paolo Ardoino, stated that the company aims to become a “world-class partner” to the U.S. in order to expand dollar hegemony globally. The company has highlighted its efforts to prevent the use of USDT for illicit means, including a strong Know Your Customer (KYC) and Anti-Money Laundering (AML) program. Tether is registered as a Money Service Business with the Financial Crimes Enforcement Network (FinCEN) and works with third-party services to conduct due diligence and background checks on potential customers. The company also uses Chainalysis’ Reactor Tool to monitor transactions and identify high-risk or suspicious activity.
Additionally, Tether has emphasized its extensive cooperation with global law enforcement agencies, having worked with 19 jurisdictions globally and assisted with ongoing investigations. The company has frozen USDT associated with hacks and thefts, as well as collaborated with Israel’s anti-terrorist financing agency to identify and freeze wallets associated with terrorist organizations.
Tether’s commitment to preventing the illicit use of USDT is evident through its actions to assist law enforcement authorities and its ongoing efforts to implement stringent KYC/AML measures. The company’s cooperation with global law enforcement agencies and proactive stance against illicit activities further solidifies its commitment to preventing the abuse of stablecoins for illegal purposes.