Stablecoin issuer Tether has taken action against terrorist activity by freezing 32 addresses associated with such activity in Israel and Ukraine. Collaborating with local law enforcement agencies, the company has successfully frozen $873,118 worth of Tether (USDT) linked to illicit activity in the two countries. Israel’s National Bureau for Counter Terror Financing played a crucial role in this joint effort.
Tether CEO Paolo Ardoino emphasized the traceability and trackability of cryptocurrency transactions on blockchain platforms. Leveraging this transparency, Tether has been able to block the usage of USDT connected to terrorist funding. Ardoino stated, “Contrary to popular belief, cryptocurrency transactions are not anonymous; they are the most traceable and trackable assets.”
In its commitment to combatting criminal and terrorist activities, Tether continues to collaborate with global law enforcement agencies. The company aims to track and trace the movements of illicit funds and freeze assets whenever possible. In late 2022, Tether froze over $360 million in assets, subsequently re-issuing more than $100 million of intercepted USDT.
Tether has now frozen approximately $835 million of USDT across multiple countries, predominantly related to blockchain and cryptocurrency exchange hacks. The stablecoin issuer has partnered with 32 nations worldwide to address cyber activities linked to its dollar-backed stablecoin.
Israel’s defense minister Yoav Gallant announced in June 2023 that the country had successfully seized cryptocurrency wallets containing millions of dollars, which were transferred to the terrorist organization Hezbollah. This operation resulted in the confiscation of over $1.7 million worth of cryptocurrency, facilitated by the use of Chainalysis blockchain analysis tools.
On another note, recent blockchain data indicates a shift in cybercriminals’ preference for transferring value over the internet. Instead of using Bitcoin, criminals are increasingly turning to stablecoins and altcoins due to their accessibility and ease of laundering through decentralized exchanges (DEXs).
The freezing of funds and the disruption of illicit activities associated with cryptocurrencies demonstrate the industry’s commitment to maintaining integrity and preventing misuse. Tether’s actions reflect the ongoing collaboration between cryptocurrency platforms and law enforcement agencies in the fight against terrorism and criminal activities.
The effectiveness of blockchain technology in enabling traceability and accountability represents a significant step forward in deterring illicit financial operations. By leveraging the inherent transparency of blockchain, cryptocurrency issuers and law enforcement agencies can continue to combat criminal activities linked to digital assets.
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