Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how Tether has frozen more than 1,800 wallets linked with criminal activity.
Tether Freeze Wallets
The creator of the USDT stablecoin, Tether, have frozen over 1,800 wallets which are linked to criminal activity. This has been done in a compliance effort with global agencies and it was reported on the 18th of September 2024 through Tether. The 1,850 or so wallets were linked to criminal activities across 45 jurisdictions, and the freezing of these wallets happened in conjunction with more than 180 agencies.
The company took this action as part of their ongoing efforts to combat financial crime and maintain integrity with their stablecoin ecosystem. It has also led to the recovery of $1.86 billion in assets. The report noted Tether's ongoing commitment to compliance along with highlighting their strict adherence to Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations. This remains a core focus of the ongoing work by the company to build trust within the financial and cryptocurrency sectors.
The report also noted how Tether collaborated with agencies in several high-profile cases, including assisting in the recovery of funds linked to cybercriminal activities such as the Lazarus Group, a North Korean hacking collective.
This is not the first time Tether has frozen wallets as part of their efforts against crime in their ecosystem. Back in December 2023 Tether announced a policy aimed at safeguarding their ecosystem through voluntary wallet-freezing. This was aimed towards activity connected with Sanctioned persons on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. At the time they froze 41 wallets in what Tether described as "precautionary measures." Many of those wallets had been making use of coin-mixing service Tornado Cash and another of those wallets was connected with the $625 million Ronin Bridge attack. Tether CEO Paolo Ardoino stated at the time:
"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."
Tether have also seen development in a separate legal setting as the United Kingdom High Court ruled on the property status of Tether's USDT stablecoin. The court recognized USDT as a form of property after a victim of fraud, Fabrizio D’Aloia, looked to recover their stolen USDT. The stablecoin had been laundered through multiple crypto exchanges and mixers and this ruling has set an important legal precedent for digital assets. The ruling was delivered by Deputy Judge Richard Farnhill and noted that Tether holds property rights under English law, similar to other assets that can be traced and subjected to trust claims.
Have a great day.
Peace. CryptoGod-1.
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