Tether Freezes $873k in Cryptocurrency Linked to Terror Activities; Highlights Traceability of Digital Assets
Summary:
Stablecoin issuer Tether, in alliance with local law enforcement, has frozen $873,118 worth of USDT linked to terrorist activities in Israel and Ukraine. Tether CEO Paolo Ardoino emphasized the traceability of crypto transactions and the company's ongoing efforts with global agencies to monitor and freeze assets related to illicit activities. In the past year, Tether froze over $360 million in assets and estimates a total freeze of about $835 million primarily connected to cryptocurrency exchange breaches. The shift from Bitcoin to stablecoins and alt coins for illicit online activities has also been observed.
In a joint operation with local law enforcement, Tether, a stablecoin issuer, has frozen 32 addresses associated with terrorist activities in Israel and Ukraine. The company has confirmed that they've blocked $873,118 in USDT, a cryptocurrency, linked to illegal activities in both countries. This initiative was undertaken in conjunction with the National Bureau for Counter Terror Financing in Israel.
Paolo Ardoino, who assumed the role of Tether CEO in October 2023, pointed out that cryptocurrency transactions are far from untraceable. In fact, he claimed that the nature of the blockchain technology makes it one of the easiest to track and trace. This has allowed Tether to put a hold on the usage of USDT attached to funding for terrorism.
He emphasized that, contrary to most people's understanding, cryptocurrency transactions aren't anonymous at all but are, indeed, the most traceable assets available. He went on to mention that Tether is actively partnering with international law enforcement agencies to monitor illicit fund movements and, when feasible, freeze assets that have connections to criminal or terrorist activities.
In late 2022, Tether had already frozen over $360 million in assets, later reissuing more than $100 million in recovered USDT. The company's current estimate of the total amount of frozen USDT stands around $835 million, primarily linked with blockchain and cryptocurrency exchange breaches. To tackle illicit online activities involving its dollar-pegged stablecoin, Tether has partnered with 32 countries globally.
In June 2023, Yoav Gallant, the Defense Minister of Israel, disclosed the confiscation of cryptocurrency wallets containing millions intended for the terrorist organization Hezbollah. In this operation, leveraging Chainalysis blockchain analysis tools, over $1.7 million in cryptocurrency was impounded. Conversely, there's a noted shift in cybercriminals' approach, with an increasing number abandoning Bitcoin as an internet value transfer mechanism, preferring stablecoins and alt coins instead due to their better accessibility and ease of laundering via decentralized exchanges (DEXs).
Published At
10/16/2023 1:05:10 PM
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