Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent announcement by the CEO of Tether, Paolo Ardoino, of a partnership with the FBI and Secret Service as outlined in letters he made public.
Tether Disclose Letters
The company behind the world famous USDT Stablecoin, Tether, has decided to make a number of letters it sent to the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee public. The move have come as a way for Tether to demonstrate its dedication to security and close cooperation with law enforcement agencies.
Ardoino was keen to emphasise that company made the decision to disable Tether tokens held in wallets which were associated with the Office of Foreign Assets and Controls (OFAC) sanction list as part of their efforts to work in tandem with law enforcement. He went on to claim that Tether have to date assisted the Department of Justice, U.S. Secret Service, and Federal Bureau of Investigation (FBI) in freezing 326 wallets controlling a total of 435 million USDT.
The letters disclosed that Tether has recently onboarded the United States Secret Service onto their platform and that the company is also in the process of doing the same with the FBI. In creating these partnerships, Tether is going all out to demonstrate its commitment to collaborating with law enforcement agencies to ensure the integrity and security of its operations.
The letters in question, with a section of one such letter shown above, were sent to Senator Cynthia Lummis, a well-known proponent of cryptocurrencies within the Senate. They were also sent to the chairs and ranking members of the aforementioned committees. The companies communication with legislators provides transparency regarding its interactions with law enforcement and its efforts to comply with regulatory standards.
In the last week Tether has frozen the wallets of a number of individuals which were sanctioned by the U.S. Office of Foreign Asset Controls (OFAC). The company is aiming to prevent potential misuse of its tokens and enhance its security measures by aligning with global law enforcement and regulators. In that time Tether has frozen a total of 161 Ethereum wallets, although 150 of these wallets currently hold no USDT tokens. Within the 11 remaining wallets there is over 3.5 million USDT, although one wallet is holding 3.4 million tokens and has been linked to a recent hack of the betting platform Stake. Within the other wallets holding USDT, two addresses contain around 20,000 tokens each, while another holds nearly 60,000 tokens. The other wallets contain smaller amounts with a single wallet containing just 16 cents worth of frozen USDT.
Good to see action being taken against those who are considered bad actors. Whether their crimes are related to cryptocurrency or not, knowing that wallets will be frozen due to other bad actions can hopefully work as a deterrent to others considering making use of cryptocurrency for their crimes. Hopefully in time this can help to improve the overall crypto space.
Have a great day.
CryptoGod-1.
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