In a press release issued on Monday, Tether announced the freezing of 32 virtual wallets associated with cryptocurrency-financed activities related to terrorism and conflicts in Israel and Ukraine. Tether, the issuer of the world’s largest stablecoin by the same name, revealed its ongoing collaboration with Israel’s National Bureau for Counter Terror Financing in these endeavors. The total value held in these frozen addresses amounts to $873,118.34.
Tether’s stablecoin, known as tether or USDT, is pegged to the U.S. dollar and boasts a market capitalization of $83.5 billion. It serves as a gateway to dollar exposure for individuals in numerous global markets who might not have had access otherwise. However, the company has long grappled with allegations of questionable practices and concerns surrounding the status of its reserves, which have raised questions about Tether’s business operations.
In a statement, the recently appointed CEO of Tether, Paolo Ardoino, conveyed, “In contrast to prevailing misconceptions, cryptocurrency transactions do not offer anonymity; they are, in fact, among the most traceable and easily trackable assets. Every transaction is meticulously recorded on the blockchain, enabling anyone to trace the movement of funds. Consequently, those engaged in unlawful cryptocurrency activities will inevitably be identified, as the technology leaves little room for such actions to go unnoticed.”
Tether has, on occasion, frozen and returned stolen funds to their rightful owners. The company reports having aided 31 agencies across 19 jurisdictions worldwide in freezing assets totaling $835 million linked to criminal activities. Additionally, in November 2022, Tether responded to a law enforcement request by freezing $46 million worth of USDT belonging to the bankrupt cryptocurrency exchange FTX.
Ardoino further stated, “Tether remains dedicated to advancing the responsible use of blockchain technology and serving as a robust deterrent against cybercrime. We eagerly look forward to ongoing partnerships with international law enforcement agencies as part of our steadfast commitment to global security and financial integrity.”
