Stablecoin issuer Tether has taken a decisive action to freeze over $873K worth of USDT linked to terrorism in Israel and Ukraine. This collaborative effort involved 32 addresses and cooperation with local law enforcement agencies.
Tether’s Proactive Role in Security
Paolo Ardoino, the CEO of Tether since October, emphasized the traceability of cryptocurrency transactions on blockchain platforms. Contrary to common misconceptions, these transactions are not anonymous but, in fact, among the most traceable and trackable assets.
Actively collaborating with global law enforcement agencies, Tether is further committed to tracking and tracing illicit funds. The stablecoin issuer strives to freeze assets associated with criminal and terrorist activities, contributing to a safer digital financial ecosystem.
Notably, this isn’t the first time Tether has taken decisive action. In late 2022, over $360 million in assets were frozen, with over $100 million of intercepted USDT subsequently re-issued. The cumulative efforts now amount to freezing an estimated $835 million of USDT, largely stemming from blockchain and cryptocurrency exchange hacks.
Global Cooperation for a Safer Cyberspace
Tether’s collaboration extends to 32 countries worldwide, addressing illicit cyber activities related to its dollar-backed stablecoin. The company’s dedication to security further underscores the importance of global cooperation in combating financial crimes in the digital realm.
Recent developments in Israel, where cryptocurrency wallets containing millions were seized from the terrorist organization Hezbollah, highlight the ongoing battle against illicit finance. Chainalysis’ blockchain analysis tools also played a crucial role in the operation, revealing a shift in cybercriminals’ preference for stablecoins and altcoins over Bitcoin.
The Rise of Stablecoins in Cybercriminal Tactics
Notably, blockchain data suggests a trend where cybercriminals are opting for stablecoins and altcoins for transferring value online. The accessibility and ability to be laundered through decentralized exchanges make these digital assets further attractive for illicit activities.
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