Major Stablecoin Issuer Tether Freezes $870,000 Linked to Criminal Activities in Israel and Ukraine
The largest stablecoin issuer, Tether, has announced the freezing of 32 addresses associated with criminal funds related to incidents in Israel and Ukraine, amounting to $870,000.
On October 16, Tether stated that they had been working with the Israeli crime control authority, NBCTF, to counter cryptocurrency-funded terrorism and warfare. Tether says that it is collaborating with 31 countries to freeze criminal finances, with a total of $835 million in assets frozen to date.
By freezing an address, it means Tether restricts the ability to "send USDT" function of that wallet, meaning that the owner cannot transfer funds until the freeze is lifted.
The newly-appointed Tether CEO Paolo Ardoino said that;
"Cryptocurrency is a powerful tool, but it is not a tool for crime. Contrary to popular belief, cryptocurrency transactions are not anonymous; they are the most traceable and trackable assets. "
Tether's ability to freeze and return stolen funds to legitimate users demonstrates the innovative new capabilities and level of security that blockchain technologies can bring to the global financial system.
He also added,
"Every transaction is recorded on the blockchain, making it feasible for anyone to trace fund movements. Consequently, criminals foolish enough to employ cryptocurrencies for illegal activities will inevitably be identified."
It also shows that Tether is willing to take action to protect its users, makes it more difficult for criminals to use its stablecoin for money laundering purposes, and helps to prevent fraud.
Tether's ability to support law enforcement is built on the ability not only to follow the movement of USDT as bad actors move funds around but to freeze USDT following appropriate legal proceedings and risk
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