Tether recently froze 41 wallets associated with individuals on the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) List. This action by Tether comes as part of their efforts to strengthen the responsible use of stablecoin technology and ensure a safer ecosystem for users.
Tether’s Precautionary Measures
Describing the freezing of these wallets as “precautionary measures,” Tether’s CEO Paolo Ardoino highlighted the importance of bolstering the positive utilization of stablecoin technology. This action follows on-chain data indicating that several of the frozen wallets had utilized the coin-mixing service Tornado Cash within the past six months.
A frozen wallet is linked to the $625 million Ronin Bridge attack, acknowledged by the U.S. Treasury Department as the handiwork of the Lazarus Group—a North Korean hacking faction.
Promoting a Safer Stablecoin Ecosystem
Ardoino also emphasized the significance of these actions in ensuring a safer and more secure environment for stablecoin users.
Moreover, by voluntarily freezing addresses newly added to the SDN List and also previously listed addresses, Tether aims to further fortify the positive usage of stablecoin technology.
Past Instances of Wallet Freezing by Tether
Moreover, this recent move by Tether echoes previous instances where the company took similar actions. In October, Tether froze 32 wallets associated with terrorism and warfare in Ukraine and Israel. Moreover, last month, an additional $225 million was frozen due to ties with a human trafficking syndicate following an investigation by the U.S. Department of Justice.
Tether’s proactive steps in freezing wallets associated with individuals on the OFAC SDN List, particularly those engaging in activities detrimental to the stablecoin ecosystem, underscore the company’s commitment to fostering a safer and responsible environment for all stablecoin users. These measures also aim to curb illicit activities and promote the positive utilization of stablecoin technology.
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