Tether (USDT), the entity behind the world’s largest stablecoin, has taken a decisive step by freezing wallets associated with individuals sanctioned by the U.S. Office of Foreign Asset Controls (OFAC). The company announced this move as part of its commitment to upholding the highest safety standards within its global ecosystem and fostering collaboration with law enforcement and regulatory bodies worldwide.
Paolo Ardoino, the CEO of Tether, emphasized the strategic decision’s alignment with the company’s dedication to safety and the promotion of a secure stablecoin environment for users. The voluntary freezing of wallet addresses associated with the SDN (Specially Designated Nationals) List, both new and previously added, reflects Tether’s proactive stance against potential misuse of its tokens.
While Tether has a history of freezing funds linked to illicit activities, it recently extended this measure to wallets interacting with the sanctioned protocol, Tornado Cash, despite no specific requests from U.S. law enforcement. Blockchain records reveal Tether’s blacklisting of Tornado Cash’s contract addresses.
Tether’s recent action includes the freezing of 161 Ethereum wallets, although 150 of these currently hold no USDT tokens. Among the 11 remaining wallets, over 3.5 million USDT tokens are held, with a notable concentration in an address linked to a recent hack of the betting platform Stake.
These actions come amid Tether’s strategic move in May 2023 to allocate up to 15% of net realized profits into Bitcoin, aiming to safeguard reserves from purchasing power loss during extended cryptocurrency market downturns. Tether’s Bitcoin holdings have experienced a significant 85% increase, equivalent to $1.1 billion, thanks to the recent surge in BTC prices.
