Tether, the stablecoin issuer, is intensifying its efforts to combat illicit crypto activities through enhanced collaboration with law enforcement agencies. The company has shared letters sent to members of the U.S. House Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs, outlining its commitment to fighting the illicit use of stablecoins.
Tether’s strategy includes close collaboration with law enforcement agencies such as the Department of Justice, Secret Service, and FBI. The company has already frozen over $435 million worth of funds and has now expanded its partnerships by onboarding the Secret Service and is in the process of doing the same with the FBI.
Tether CEO Paolo Ardoino emphasized the company’s ambition to be a “world-class partner” to the U.S. and contribute to the global expansion of the dollar’s influence. This increased collaboration with law enforcement comes in response to allegations of terrorism financing and sanctions violations.
Tether has highlighted its emphasis on regulatory compliance, particularly in implementing robust know-your-customer (KYC) measures. The company has a dedicated Compliance Department and a strong KYC/AML program, which has undergone examination by the Internal Revenue Service (IRS) on behalf of the Financial Crimes Enforcement Network (FinCEN).
Tether is also utilizing a reactor tool from Chainalysis to scrutinize blockchain transactions and identify wallets associated with problematic activities or funding entities classified as terrorist groups by the U.S. government.
The company has implemented a wallet-freezing policy, restricting access to over 200 wallets linked to illicit activities and freezing tokens valued at $3.5 million. Additionally, Tether has initiated a voluntary wallet-freezing policy to freeze activities connected with individuals sanctioned by the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List.
In summary, Tether is taking significant steps to combat illicit crypto transactions by strengthening its policies and collaborating closely with law enforcement agencies. The company’s focus on regulatory compliance and the implementation of tools to scrutinize blockchain transactions demonstrate its commitment to enhancing integrity within the crypto industry.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Middle East |
| Countries | 🇺🇸 |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | Cynthia Lummis, French Hill, Paolo Ardoino, None |
| Companies | Internal Revenue Service (IRS), Department of Justice, FBI, Secret Service, Financial Crimes Enforcement Network (FinCEN) |
| Currencies | US Dollar, Tether |
| Securities | None |
