Tether, the popular stablecoin issuer, has frozen 41 cryptocurrency wallets that were allegedly tied to individuals or entities under economic sanctions.
On Saturday, Tether froze 41 wallets of individuals on the Office of Foreign Assets Control's (OFAC) Specially Designated Nationals (SDN) List. Tether described the move as a "precautionary measure" in a blog post.
Over the past six months, on-chain data reveals that several wallets have been utilizing Tornado Cash, a coin-mixing service. The U.S. Treasury Department has identified that one of the wallets that has been frozen is connected to the $625 million Ronin Bridge attack carried out by the Lazarus Group, a North Korean hacking organization.
Tether Extends Support of Sanction Rules
Tether CEO Paolo Ardoino stated that by voluntarily freezing new wallet addresses and previously added addresses in the SDN List, they aim to improve the positive usage of stablecoin technology. This move will promote a safer stablecoin ecosystem for all users.
In October of last year, Tether, a popular cryptocurrency stablecoin, took action against illegal activities by freezing 32 wallets that were linked to terrorism and warfare in Ukraine and Israel. This move highlighted Tether's commitment to combating the use of cryptocurrencies for nefarious purposes. Additionally, Tether recently froze $225 million last month concerning a human trafficking syndicate following an investigation by the U.S. Department of Justice. This further demonstrates Tether's responsibility and dedication to promoting financial integrity and upholding legal compliance
A Pivot to Comply with Sanctions
It is worth noting that Tether's most recent policies are in direct contrast to its previous positions regarding sanctioned cryptocurrencies. It is worth mentioning that last year, the company blatantly disregarded orders from security agencies, affirming its unwillingness to sanction Tornado cash addresses
Although Tether did not explicitly mention the reason behind the company's policy change, it is speculated that it may be related to the recent legal actions against Binance. The leading cryptocurrency exchange by trading volume recently settled with the US federal prosecutors, agreeing to pay $4.3 billion for violating money laundering and sanctions regulations
