Tether Will Work Alongside Regulatory Bodies To Combat USDT Misuse

Tether CEO Paolo Ardoino is actively engaged in addressing the inappropriate use of the USDT stablecoin for unlawful purposes and reinforcing the credibility of the cryptocurrency sector. Following the introduction of a novel policy for freezing wallets, specifically targeting individuals on the SDN list which led to the freezing of more than 200 wallets, the stablecoin provider aims to escalate its efforts.

Cooperating with the law

In a recent communication with US lawmakers, the new CEO outlined his vision for preventing the exploitation of the USDT stablecoin, involving collaboration with law enforcement heavyweights such as the Secret Service and the FBI.

On December 15th, Tether expressed its unwavering commitment to combating the illicit utilization of its stablecoins in letters addressed to members of the US Senate Committee on Banking, Housing, and Urban Affairs, as well as the US House Financial Services Committee.

Underlining its dedication to establishing a sustainable and robust infrastructure, Tether committed to full cooperation with law enforcement in the fight against terrorist financing and other illicit activities. In the communication, Paolo elaborated on the recent endeavors to combat criminal activities. This included highlighting the success of its new wallet-freezing policy, which enabled law enforcement to restrict access to over 200 wallets, resulting in the freezing of over 3.5 million USDT.

Binance and Tether still in trouble

The stablecoin issuer emphasized its collaboration with the US Department of Justice, the US Secret Service, and the FBI as a concrete illustration of its partnership with law enforcement agencies, disclosing its involvement in freezing the aforementioned wallets. The move comes in response to US Senators urging the Department of Justice to scrutinize the stablecoin issuer.

In a letter dated October 26th, Senator Cynthia Lummis and Representative French Hill urged the DOJ to make a charging decision on Binance and promptly conclude investigations into the alleged involvement by Tether concerning various illicit activities.

The legislators alleged that Binance and Tether provided material support and resources for crypto-funded terrorism, violating applicable sanctions laws and the Bank Secrecy Act. They also claimed that the stablecoin issuers neglected proper screenings despite being aware of extremist groups utilizing stablecoins for terrorism and illicit activities.

The significance of Tether cooperating with law enforcement in combating the misuse of its stablecoins is crucial for the long term positive trajectory of the cryptocurrency industry. However, it also raises concerns about potential unwarranted centralization.