Stablecoin issuer Tether recently took the precautionary step of freezing 41 wallets associated with individuals listed on the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) list. This move, described as a proactive measure, is consistent with Tether’s commitment to compliance and security. Some of the frozen wallets were found to have utilized the coin mixing service Tornado Cash over the past six months, and one wallet was the $625 million Ronin Bridge, which was identified by the North Korean hacking organization Lazarus Group. (Ronin Bridge) was found to be involved in the attack.
“By voluntarily freezing newly added wallet addresses to the SDN list and freezing previously added addresses, we further strengthen the positive use of stablecoin technology and promote more secure services,” said Tether CEO Paolo Ardoino. “We will be able to do it,” he said, emphasizing the importance of this measure. A stablecoin ecosystem for all users.”
This is not the first time Tether has taken this step. Last October, the company froze 32 wallets linked to terrorism and war in Ukraine and Israel. Tether also froze $225 million last month in connection with a human trafficking ring following an investigation by the U.S. Department of Justice.
In response to evolving challenges, Tether announced a new security policy on December 9 that aims to strengthen the overall security of the cryptocurrency ecosystem. The voluntary wallet freeze initiative specifically targets transactions involving sanctioned persons on OFAC’s SDN list. While Tether already had a wallet freeze policy applicable to its platform, the new measures demonstrate the company’s willingness to cooperate with global law enforcement by extending sanctions controls to secondary markets.
Commenting on the strategic decision, Paolo Ardoino said: “This strategic decision is consistent with our firm commitment to maintaining the highest standards of safety for the global ecosystem and expanding our close partnership with global law enforcement and regulators. “I do,” he said.
According to blockchain analytics firm Lookin Chain, Tether’s Treasury transferred $60 million worth of USDT to a “mysterious fund/institution” on December 8. Tether reportedly transferred a total of $1.76 billion (USDT) to this fund since October 20, which was further distributed to other exchanges. Tether’s large transactions continue to attract attention considering its prominent role in the cryptocurrency ecosystem, maintaining a market capitalization of $90 billion, representing over 70% dominance of the stablecoin market in 2023.
In a blog post on December 9, Tether introduced a voluntary wallet freeze initiative in an effort to strengthen the security and integrity of the cryptocurrency ecosystem. Although no specific details were provided about the new policy, the company’s proactive stance signals its commitment to meeting global regulatory standards and implementing measures to prevent misuse of its platform.