Stablecoin issuer Tether has cooperated with local law enforcement agencies and frozen 32 addresses related to terrorist activities in Israel and Ukraine.
According to the company’s announcement, $873,118 worth of Tether (USDT) linked to illegal activities in Israel and Ukraine has been frozen. The action was taken in partnership with Israel’s National Counter-Terrorism Financing Authority.
Paolo Ardoino, who was appointed CEO of Tether in October 2023, emphasized that cryptocurrency transactions are easily traceable on blockchain platforms, which allows Tether to help prevent the use of USDT related to terrorist financing.
“Contrary to popular belief, cryptocurrency transactions are not anonymous; they are the most traceable and traceable assets.”
The CEO added that stablecoin issuers are actively working with global law enforcement agencies to track and trace illicit flows of funds and, where possible, freeze assets related to criminal and terrorist activities.
At the end of 2022, Tether froze more than $360 million in assets. The company subsequently reissued more than $100 million in intercepted USDT.
Related: Tether Stablecoin Loans Set to Increase in 2023 Despite Downsizing Announced in 2022
The company currently estimates it has frozen a total of $835 million in USDT, primarily related to blockchain and cryptocurrency trading hacks. Tether has partnered with 32 countries around the world to help address illegal online activity involving its U.S. dollar-backed stablecoin.
In June 2023, Israeli Defense Minister Yoav Gallant announced that the country had seized cryptocurrency wallets containing millions of dollars that had been transferred to the terrorist organization Hezbollah.
Using the Chainaanalysis blockchain analysis tool, more than $1.7 million in cryptocurrency was seized during the operation.
Meanwhile, blockchain data suggests that cybercriminals no longer use Bitcoin as a means of transferring value across the network, instead choosing to use stablecoins and altcoins due to their accessibility and access to decentralized exchanges (DEX) the ability to conduct money laundering.
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